Bill > SB1859

This bill updates Tennessee's Uniform Commercial Code (UCC) to incorporate recent amendments from the Uniform Law Commission, primarily focusing on modernizing rules for electronic transactions and clarifying existing provisions. Key changes include redefining terms like "conspicuous" to consider the totality of circumstances, updating the definition of "delivery" for electronic documents of title, and expanding the definition of "money" to include electronic forms while clarifying what is excluded. The bill also introduces new concepts and rules related to "controllable electronic records," "controllable accounts," and "controllable payment intangibles," which are new categories of electronic assets that can be controlled and used as collateral. It revises rules for perfection and priority of security interests in these new electronic assets, as well as in existing categories like chattel paper and deposit accounts, and clarifies how "control" is established for various electronic assets. Furthermore, the bill updates provisions related to sales and leases of goods, particularly for "hybrid transactions" that involve both goods and services or other property, and modifies rules for signatures, records, and notices to accommodate electronic formats. It also introduces transitional provisions to manage the shift to these updated laws, ensuring that existing transactions and perfected security interests are handled appropriately.

Business and Industry

https://wapp.capitol.tn.gov/apps/Billinfo/default.aspx?BillNumber=SB1859&ga=114