House Bill 1549 proposes significant amendments to the Tennessee Code Annotated, particularly concerning the Uniform Commercial Code. The bill redefines key terms such as "conspicuous," "delivery," and "person," expanding the definition of "person" to include a wider range of legal entities. It introduces new definitions, including "electronic," and modifies existing ones to clarify the scope of transactions involving goods and leases, especially in hybrid transactions. Notably, the bill replaces the term "writing" with "record" in multiple sections to reflect the growing use of electronic documentation, and it emphasizes the necessity of a signed record for certain agreements, enhancing the legal framework for commercial transactions in Tennessee.

Additionally, the bill outlines new provisions regarding the control of electronic documents and security entitlements, specifying the rights of parties asserting control. It clarifies the duties of secured parties, particularly in relation to demands from debtors, and establishes conditions for the perfection and priority of security interests in various forms of collateral, including controllable accounts and electronic records. The amendments aim to modernize the legal landscape surrounding secured transactions, ensuring that it aligns with contemporary practices and technologies. The act is set to take effect on July 1, 2026, and includes transitional provisions to maintain the validity of transactions entered into before the effective date.

Statutes affected:
Introduced: 47-1-201(b)(11), 47-1-201, 47-1-201(b)(16), 47-1-201(b)(22)(C), 47-1-201(b)(28), 47-1-201(b)(37), 47-1-201(b)(38), 47-1-201(b), 47-1-204, 47-1-301(c), 47-1-301, 47-1-306, 47-2-102, 47-2-106, 47-2-201, 47-2-202, 47-2-203, 47-2-205, 47-2-209(2), 47-2-209, 47-2A-102, 47-2A-103, 47-2A-107, 47-2A-201, 47-2A-202, 47-2A-203, 47-2A-205, 47-2A-208(2), 47-2A-208, 47-3-104(a)(3), 47-3-104, 47-3-105(a), 47-3-105, 47-3-401, 47-3-604(a), 47-3-604, 47-4A-103(a)(1), 47-4A-103, 47-4A-201, 47-4A-202(b), 47-4A-202, 47-4A-202(c), 47-4A-203(a)(1), 47-4A-203, 47-4A-207(c)(2), 47-4A-207, 47-4A-208(b)(2), 47-4A-208, 47-4A-210(a), 47-4A-210, 47-4A-211(a), 47-4A-211, 47-4A-305(c), 47-4A-305, 47-4A-305(d), 47-5-104, 47-5-116, 47-7-102(a), 47-7-102, 47-7-106, 47-8-102, 47-8-103, 47-8-106(d)(3), 47-8-106, 47-8-110, 47-8-303(b), 47-8-303, 47-9-102(a), 47-9-102, 47-9-102(a)(11), 47-9-102(a)(47), 47-9-102(a)(61), 47-9-102(a)(66), 47-9-102(b), 47-9-104(a), 47-9-104, 47-9-105, 47-9-203(b)(3), 47-9-203, 47-9-204(b), 47-9-204, 47-9-207(c), 47-9-207, 47-9-208(b), 47-9-208, 47-9-209(b), 47-9-209, 47-9-210(a), 47-9-210, 47-9-301, 47-9-301(3), 47-9-304(a), 47-9-304, 47-9-305(a), 47-9-305, 47-9-310(b)(8), 47-9-310, 47-9-312, 47-9-313, 47-9-314, 47-9-316(a), 47-9-316, 47-9-316(f), 47-9-317, 47-9-323, 47-9-324, 47-9-330, 47-9-331, 47-9-332, 47-9-334(f)(1), 47-9-334, 47-9-341, 47-9-404(a)(2), 47-9-404, 47-9-406(a), 47-9-406, 47-9-406(b), 47-9-406(c), 47-9-406(d), 47-9-406(f), 47-9-406(g), 47-9-406(j), 47-9-408(a), 47-9-408, 47-9-408(c), 47-9-408(e), 47-9-509, 47-9-513, 47-9-601(b), 47-9-601, 47-9-605, 47-9-608(a)(1)(C), 47-9-608, 47-9-611, 47-9-613, 47-9-614, 47-9-615, 47-9-616, 47-9-619(a), 47-9-619, 47-9-620, 47-9-621(a)(1), 47-9-621, 47-9-624, 47-9-628