Bill > SB1859

This bill updates Tennessee law to align with recent amendments to the Uniform Commercial Code (UCC), a set of standardized laws governing commercial transactions. Key changes include clarifying definitions for terms like "conspicuous," "delivery," "money," and "signed" to better accommodate electronic transactions. It also introduces new provisions and definitions related to "controllable electronic records," "controllable accounts," and "controllable payment intangibles," which are new categories of digital assets. The bill refines rules for perfection and priority of security interests in these new digital assets, as well as in existing categories like chattel paper and electronic documents of title. Additionally, it updates rules for when a buyer takes collateral free of a security interest, particularly concerning electronic records and controllable assets, and establishes transitional provisions to manage the shift to these updated laws, with the act taking effect on July 1, 2026.