The bill amends various sections of the Vermont Statutes Annotated (V.S.A.) to modernize the legal framework governing commercial transactions, particularly in relation to electronic records and hybrid transactions. Key changes include the updated definition of "conspicuous," which now requires that a reasonable person should notice it based on the totality of the circumstances, and the clarification of "document of title" to encompass both electronic and tangible forms. The bill also introduces the term "hybrid transactions," which involve both goods and services, and modifies the enforceability of contracts by replacing "writing" with "record." This shift reflects contemporary practices and ensures that signed records are necessary for certain agreements.

Additionally, the bill introduces significant updates to the handling of electronic money, security interests, and the rights and duties of secured parties. It establishes that a transferee of electronic money can take it free of a security interest if they obtain control without collusion, and it clarifies the rights of secured parties in relation to collateral. New provisions regarding the perfection and priority of security interests are also included, allowing secured parties to perfect their interests in various types of collateral without the need for filing in certain cases. Overall, the bill aims to enhance clarity, efficiency, and enforceability in financial transactions and secured interests, accommodating the increasing use of electronic records in business practices.

Statutes affected:
As Introduced: 9A-2A, 9A-4A
As Passed By the House -- Official: 9A-2A, 9A-4A
As Passed By the House -- Unofficial: 9A-2A, 9A-4A
As Passed by Both House and Senate -- Official: 9A-2A, 9A-4A
As Passed by Both House and Senate -- Unofficial: 9A-2A, 9A-4A
As Enacted: 9A-2A, 9A-4A