House Bill 584 proposes comprehensive amendments to the Uniform Commercial Code (UCC) to update and clarify the legal framework for secured transactions, particularly in relation to electronic records and chattel paper. The bill redefines key terms such as "signed," "record," and "delivery" to include electronic forms and processes, reflecting the increasing prevalence of electronic transactions. It also addresses hybrid transactions, modifies the statute of frauds, and clarifies the scope of the UCC in relation to sales and leases. The bill repeals and reenacts certain sections for clarity and amends others to reflect the shift from written to electronic records. Notably, it introduces new definitions such as "controllable account," "controllable electronic record," and "controllable payment intangible," and it changes the formal requirements for banking instruments and letters of credit to be in the form of a signed record.

The bill also makes significant changes to the perfection and priority rules for security interests in various types of collateral, including deposit accounts, investment property, and electronic chattel paper. It specifies the governing law for these interests and outlines the conditions under which a purchaser can gain control or priority. The bill renumbers exemptions for the filing of a financing statement and perfection of security interests, and it amends the language to indicate that a security interest is perfected "not earlier than the time" control is obtained. Additionally, the bill revises the rights and duties of parties involved in transactions, replacing the term "authenticated" with "signed" in various sections, and it provides new guidelines for the contents and form of notifications before the disposition of collateral. The bill aims to modernize the UCC to accommodate electronic transactions and to provide clearer guidance on the control and transfer of electronic records and money. The act is set to take effect 60 days after its passage, with an effective date of October 7, 2023.

Statutes affected:
Introduced: 382-A:1-201, 382-A:2-201, 382-A:2-209, 382-A:2, 382-A:3-401, 382-A:4, 382-A:5-104, 382-A:5-116, 382-A:7-102, 382-A:8-102, 382-A:8-103, 382-A:8-110, 382-A:9-102, 382-A:1-902, 382-A:9-105, 382-A:107, 382-A:9-204, 382-A:9-208, 382-A:9-209, 382-A:9-210, 382-A:9-305, 382-A:9-306, 382-A:9-310, 382-A:9-314, 382-A:9-317, 382-A:9-324, 382-A:9-330, 382-A:9-334, 382-A:9-404, 382-A:9-406, 382-A:9-408, 382-A:9-509, 382-A:9-513, 382-A:9-611, 382-A:9-615, 382-A:9-616, 382-A:9-620, 382-A:620, 382-A:9-621, 382-A:9-624, 382-A:12-102, 382-A:12-, 382-A:12-106, 382-A:12-107, 382-A:13
As Amended by the House: 382-A:1-201, 382-A:2-201, 382-A:2-209, 382-A:2, 382-A:3-401, 382-A:4, 382-A:5-104, 382-A:5-116, 382-A:7-102, 382-A:8-102, 382-A:8-103, 382-A:8-110, 382-A:9-102, 382-A:1-902, 382-A:9-105, 382-A:107, 382-A:9-204, 382-A:9-208, 382-A:9-209, 382-A:9-210, 382-A:9-305, 382-A:9-306, 382-A:9-310, 382-A:9-314, 382-A:9-317, 382-A:9-324, 382-A:9-330, 382-A:9-334, 382-A:9-404, 382-A:9-406, 382-A:9-408, 382-A:9-509, 382-A:9-513, 382-A:9-611, 382-A:9-615, 382-A:9-616, 382-A:9-620, 382-A:620, 382-A:9-621, 382-A:9-624, 382-A:12-102, 382-A:12-, 382-A:12-106, 382-A:12-107, 382-A:13
As Amended by the Senate: 382-A:1-201, 382-A:2-201, 382-A:2-209, 382-A:2, 382-A:3-401, 382-A:4, 382-A:5-104, 382-A:5-116, 382-A:7-102, 382-A:8-102, 382-A:8-103, 382-A:8-110, 382-A:9-102, 382-A:1-902, 382-A:9-105, 382-A:107, 382-A:9-204, 382-A:9-208, 382-A:9-209, 382-A:9-210, 382-A:9-305, 382-A:9-306, 382-A:9-310, 382-A:9-314, 382-A:9-317, 382-A:9-324, 382-A:9-330, 382-A:9-334, 382-A:9-404, 382-A:9-406, 382-A:9-408, 382-A:9-509, 382-A:9-513, 382-A:9-611, 382-A:9-615, 382-A:9-616, 382-A:9-620, 382-A:620, 382-A:9-621, 382-A:9-624, 382-A:12-102, 382-A:12-, 382-A:12-106, 382-A:12-107, 382-A:13, 382-A:9-107, 382-A:9-203, 382-A:9-, 382-A:9-312, 382-A:9-313, 382-A:9-332, 382-A:9-601
Version adopted by both bodies: 382-A:1-201, 382-A:2-201, 382-A:2-209, 382-A:2, 382-A:3-401, 382-A:4, 382-A:5-104, 382-A:5-116, 382-A:7-102, 382-A:8-102, 382-A:8-103, 382-A:8-110, 382-A:9-102, 382-A:1-902, 382-A:9-105, 382-A:107, 382-A:9-204, 382-A:9-208, 382-A:9-209, 382-A:9-210, 382-A:9-305, 382-A:9-306, 382-A:9-310, 382-A:9-314, 382-A:9-317, 382-A:9-324, 382-A:9-330, 382-A:9-334, 382-A:9-404, 382-A:9-406, 382-A:9-408, 382-A:9-509, 382-A:9-513, 382-A:9-611, 382-A:9-615, 382-A:9-616, 382-A:9-620, 382-A:620, 382-A:9-621, 382-A:9-624, 382-A:12-102, 382-A:12-, 382-A:12-106, 382-A:12-107, 382-A:13, 382-A:9-107, 382-A:9-203, 382-A:9-, 382-A:9-312, 382-A:9-313, 382-A:9-332, 382-A:9-601
CHAPTERED FINAL VERSION: 382-A:1-201, 382-A:2-201, 382-A:2-209, 382-A:2, 382-A:3-401, 382-A:4, 382-A:5-104, 382-A:5-116, 382-A:7-102, 382-A:8-102, 382-A:8-103, 382-A:8-110, 382-A:9-102, 382-A:9-105, 382-A:107, 382-A:9-204, 382-A:9-, 382-A:9-209, 382-A:9-210, 382-A:9-304, 382-A:9-305, 382-A:9-306, 382-A:9-310, 382-A:9-314, 382-A:9-317, 382-A:9-324, 382-A:9-330, 382-A:9-334, 382-A:9-404, 382-A:9-406, 382-A:9-408, 382-A:9-509, 382-A:9-513, 382-A:9-611, 382-A:9-615, 382-A:9-616, 382-A:9-620, 382-A:9-621, 382-A:9-624, 382-A:12-102, 382-A:12-, 382-A:12-104, 382-A:12-106, 382-A:12-107, 382-A:13, 382-A:9-107, 382-A:9-203, 382-A:9-312, 382-A:9-313, 382-A:9-332, 382-A:9-601