House Bill 1800, also known as Senate Bill 1859, amends various sections of the Tennessee Code Annotated to modernize the Uniform Commercial Code (UCC) and clarify definitions related to banking and financial transactions. Key changes include the redefinition of terms such as "money," which now specifies that it includes only government-authorized mediums of exchange, and the introduction of new definitions like "electronic" and "hybrid transaction." The bill also replaces "writing" with "record" throughout the UCC to accommodate electronic documentation, and it clarifies the commercial reasonableness of security procedures based on customer circumstances. Additionally, it establishes that damages, including consequential damages, are recoverable based on express agreements evidenced by a record.

The bill further outlines the control and rights associated with electronic records and payment intangibles, emphasizing the need for secured parties to maintain exclusive control over these assets. It introduces new provisions regarding the perfection and priority of security interests, ensuring that existing interests remain valid and enforceable under the new law. The amendments also clarify the rights and duties of secured parties, including the conditions under which they owe a duty to debtors. Overall, these changes aim to enhance clarity and efficiency in commercial transactions, reflecting contemporary practices in banking and electronic transactions, with the act set to take effect on July 1, 2026.

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