The bill H.206 proposes significant amendments to the Uniform Commercial Code (UCC) in Vermont, aimed at modernizing legal language and clarifying definitions to better align with contemporary business practices. Key changes include the updated definition of "conspicuous" terms, which must now be presented in a way that a reasonable person would notice, and the introduction of the term "hybrid transaction" to encompass transactions involving both goods and services. The bill also replaces the term "writing" with "record" throughout the UCC, reflecting the growing acceptance of electronic records. Other notable amendments clarify the definition of "money," expand the definition of "person" to include protected series of entities, and provide more flexibility in contract modifications and rescissions.

Additionally, the bill introduces new provisions related to secured transactions, negotiable instruments, and electronic documents of title. It establishes that modifying a lease contract does not require consideration to be binding and emphasizes the importance of security procedures in verifying payment orders. The bill also outlines the criteria for control over electronic documents and introduces new definitions for "Protected purchaser" and "Qualifying purchaser." Furthermore, it clarifies the rights and duties of secured parties, including the conditions under which security interests can attach and be perfected. Overall, these amendments aim to streamline and enhance the legal framework governing financial instruments and secured transactions, ensuring clarity and efficiency in the enforcement of security interests.

Statutes affected:
As Introduced: 9A-2A, 9A-4A