Senate Bill 1859, also known as House Bill 1800, amends various sections of the Tennessee Code Annotated to modernize the Uniform Commercial Code (UCC) by updating definitions and procedural language related to banking and financial transactions. Key changes include the redefinition of terms such as "money," which now specifies that it only includes government-authorized mediums of exchange, and the introduction of new terms like "electronic" and "hybrid transaction." The bill replaces "writing" with "record" to accommodate electronic documentation and clarifies contract enforceability, particularly for sales over $500, as well as the conditions for contract modifications. Additionally, it enhances security procedures for payment orders, ensuring clear guidelines for banks and customers.

The bill also establishes new provisions regarding the control of electronic documents and security entitlements, emphasizing the importance of maintaining a unique authoritative copy. It introduces definitions for "controllable account" and "controllable payment intangible," and clarifies the requirements for control over deposit accounts and electronic money. Furthermore, it outlines the rights and duties of secured parties in relation to collateral, including the conditions under which security interests attach and the priorities of conflicting claims. Overall, these amendments aim to streamline the legal framework governing secured transactions and electronic records in Tennessee, ensuring clarity and adaptability to contemporary business practices.

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)(25), 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