Bill > H4914

This bill proposes significant amendments to Chapter 106 of the Massachusetts General Laws, primarily concerning the Uniform Commercial Code (UCC), with a focus on modernizing provisions related to electronic transactions and financial services. Key changes include the introduction of new definitions and rules for "controllable electronic records," "controllable accounts," and "controllable payment intangibles," which are new types of digital assets that can be controlled and transferred. The bill also updates definitions for terms like "delivery," "electronic," "money," and "record" to better reflect current technological capabilities, and it clarifies rules around "sending" and "signing" records in electronic formats. Furthermore, it introduces the concept of "hybrid transactions" and "hybrid leases" to address agreements that combine the sale or lease of goods with services or other property, and it revises rules for sales contracts, including the statute of frauds, to accommodate electronic records. The bill also makes extensive changes to provisions concerning negotiable instruments, bank deposits and collections, letters of credit, documents of title, investment securities, and secured transactions, aiming to harmonize these areas with the new digital asset framework and to clarify existing legal principles. Notably, it introduces new sections on "control" of electronic records and money, and it updates rules for perfection and priority of security interests in various types of collateral, including these new digital assets, to ensure clarity and consistency in commercial law. Finally, the bill includes transitional provisions to guide the implementation of these changes, specifying an effective date of January 1, 2026.

Business and Industry

https://malegislature.gov/Bills/194/H4914