Bill > HB2776

Introduced Session

An Act relating to the Uniform Commercial Code; amending 12A O.S. 2021, Sections 1-201, 1-204, 1-301 and 1-306, which relate to General Provisions of the Uniform Commercial Code; clarifying scope of certain definitions; adding definitions; providing statutory references; replacing certain term with new term; amending 12A O.S. 2021, Sections 2-102, 2-106, 2-201, 2-202, 2-203, 2-205 and 2-209, which relate to sales; deleting exception to the applicability of transactions in goods; providing for the applicability of hybrid transactions; providing exceptions to applicability provision; defining term; replacing certain term with new term; adding signed records to certain exception; amending 12A O.S. 2021, Sections 2A-102, 2A-103, 2A-107, 2A-201, 2A-202, 2A- 203, 2A-205 and 2A-208, which relate to leases; expanding scope of leases to include hybrid leases; providing guidelines for hybrid leases; making Article 2A applicable if lease-of-goods aspects predominate; adding definition; replacing certain term with new term; amending 12A O.S. 2021, Sections 3-104, 3-105, 3-401 and 3-604, which relate to negotiable instruments; expanding scope of certain definitions; deleting certain requirements for when a signature may be made; affirming obligation of party to pay check despite its destruction; deleting certain defined term; amending 12A O.S. 2021, Sections 4A-103, 4A-201, 4A-202, 4A-203, 4A-207, 4A- 208, 4A-210, 4A-211 and 4A-305, which relate to funds transfers; modifying scope of certain definitions; clarifying bank's obligations concerning security procedures; requiring express agreement be evidenced by a record; replacing certain term with new term; deleting references to electronically transmitted notices or communications; amending 12A O.S. 2021, Sections 5-104 and 5-116, which relate to letters of credit; providing for the issuance of letter of credit by signed record; deleting authentication requirements; deleting statutory reference; clarifying jurisdiction of bank's branches; amending 12A O.S. 2021, Sections 7-102 and 7-106, which relate to documents of title; deleting certain defined term; clarifying requirements for controlling electronic documents of title; providing for exclusivity of power; making power nonshareable and nonexclusive under certain circumstances; providing circumstances when a person has control of an electronic document of title; providing for the acknowledgment of control of electronic documents of title; amending 12A O.S. 2021, Sections 8-102, 8-103, 8-106, 8-110 and 8-303, which relate to investment securities; modifying scope of certain definitions; providing statutory references; declaring certain accounts and records as not a financial asset; providing an exception; stating circumstances when a purchaser has control of a security entitlement; providing for the acknowledgment of control on behalf of a purchaser; declaring the law that governs jurisdiction; modifying scope of certain definition; amending 12A O.S. 2021, Sections 1-9-102, 1-9-104, 1-9-105, 1-9- 203, 1-9-204, 1-9-207, 1-9-208, 1-9-209, 1-9-210, 1- 9-301, 1-9-304, 1-9-305, 1-9-310, 1-9-312, 1-9-313, 1-9-314, 1-9-316, 1-9-317, 1-9-323, 1-9-324, 1-9-330, 1-9-331, 1-9-332, 1-9-334, 1-9-341, 1-9-404, 1-9-406, 1-9-408, 1-9-509, 1-9-513, 1-9-601, 1-9-605, 1-9-608, 1-9-611, 1-9-613, 1-9-614, 1-9-615, 1-9-616, 1-9-619, 1-9-620, 1-9-621, 1-9-624 and 1-9-628, which relate to secured transactions; modifying scope of certain definitions; deleting and adding definitions; providing statutory references; replacing certain term with new term; expanding requirements for secured parties to control deposit accounts; clarifying requirements for establishing control of electronic chattel paper; stating manner by which a system may satisfy certain requirements; providing for the exclusivity of power under certain circumstances; providing exceptions; presuming powers to be exclusive under certain circumstance; providing ENR. H. B. NO. 2776 control to purchaser if certain conditions are met; stating when a secured party has control of a controllable electronic record, controllable account or controllable payment intangible; allowing person with specific control to deny acknowledgment of said control; modifying certain conditions to include controllable accounts, controllable electronic records, controllable payment intangibles and documents; providing statutory references; declaring chattel paper as collateral; providing for the attachment of security interests; modifying procedures for responding to signed demand by a debtor; clarifying jurisdiction requirement; declaring bank's jurisdiction even if transaction bears no relation to bank's jurisdiction; providing additional exception to certain rules; providing guidelines for determining the jurisdiction of chattel paper; establishing rules for determining jurisdiction; providing circumstances when local law governs jurisdiction; stating that filing is required to perfect security interest; allowing perfection of a security interest by taking possession or control of collateral; providing time limitations; providing for perfection by possession and control of chattel paper; providing time limitations for perfected security interests; stating circumstances that allow buyers of chattel paper, electronic documents, controllable electronic records, controllable accounts or controllable payment intangibles to take free of security interests; clarifying exceptions for buyers of goods; specifying when security interests have priority over conflicting security interests; specifying circumstances when a purchaser of chattel paper has priority over security interests in the chattel paper; declaring when purchaser of chattel paper or instrument has knowledge that purchase violates rights of the secured party; stating rights of holders and purchasers; modifying procedures for transferring money; clarifying references to promissory note; excepting certain provisions from controllable account or controllable payment intangible; stating duties of secured party; deleting certain forms; creating Notification of Disposition of Collateral form; providing instructions for form; creating Notice of Plan to Sell Property form; ENR. H. B. NO. 2776 providing instructions for form; clarifying scope of certain definitions; making certain provisions inapplicable to limiting the liability of a secured party; creating new article for the Uniform Commercial Code to be named Controllable Electronic Records; defining terms; declaring which article controls if conflict exists; providing applicability provision; stating rights of purchaser of controllable account, controllable payment intangible, and controllable electronic record; stating how qualifying purchaser acquires its rights; providing limitations on actions against qualified purchaser; providing restriction on notice of claims; declaring when a person has control of a controllable electronic record; stating exclusivity of powers under certain circumstances; declaring when powers are nonexclusive; making powers presumptive under certain circumstances; providing additional circumstances for when a person has control of a controllable electronic record; providing procedures for account debtors discharging their obligations; providing restrictions on discharging obligations; making notifications ineffective under certain circumstances; requiring certain proof if requested by account debtor; providing circumstances that show reasonable proof has been furnished; prohibiting waiver or varying of rights; making provisions subject to other laws; providing jurisdiction for controllable electronic records; stating rules for determining jurisdiction; declaring governing laws for certain matters; defining term; providing for rights to be governed under certain applicable law; creating new article for the Uniform Commercial Code to be named Transitional Provisions for Uniform Commercial Code Amendments (2022); defining terms; providing for the termination of transactions; providing for the applicability of certain articles to transactions, liens, or other interests in property; declaring the validity of transactions, liens, or other interest in property on and after certain date; making exception to applicability provision; declaring previously perfected security interest as perfected after certain date; providing guidelines for enforceable and perfected security interest when requirements therefor are not ENR. H. B. NO. 2776 satisfied; declaring status of enforceable security interest that is unperfected on certain date; stating certain actions as effective to perfect a security interest; providing for the effectiveness of financing statement for perfecting a security interest; providing for the sufficiency of taking an action before certain date; providing guidelines for determining priority of claims to collateral; providing statutory reference for determining priority of conflicting claims; stating which articles and statutes apply when determining priority; providing construing provision regarding digital currency; providing for codification; and providing an effective date. SUBJECT: Uniform Commercial Code

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Chuck Hall (R)*,  Charles McCall (R)*, 

Approved by Governor 04/18/2024 (on 04/18/2024)

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Official Document