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HB1286

Uniform Commercial Code; amendments to provisions.

Status:
Enacted

Latest Action: April 8, 2024
Governor: Approved by Governor-Chapter 652 (effective 7/1/25)

Chief Patron:
Cliff Hayes (D)

Session:
2024 Regular Session

Summary

As Passed Both Chambers. Uniform Commercial Code; amendments.

Makes a number of amendments to the Uniform Commercial Code (UCC) as adopted in Virginia. The bill amends the definitions of "money" and "conspicuous" for purposes of the UCC and makes extensive amendments throughout provisions related to UCC Article 9 to accommodate emerging technologies. Such amendments include updating the traditional rules for attachment and perfection to apply to digital assets, such as controllable electronic records, and changes to several definitions, including "chattel paper," which is reconfigured to reflect the concept that chattel paper is a secured party's or lessor's right to payment that is secured by specific goods or owned by a lessee under an agreement that includes specific goods, if evidenced by a tangible or electronic record. Under current law, UCC Article 9 provides that perfection of money is through possession; however, since the definition of "money" is amended by this bill to include intangible assets, the amended provisions related to UCC Article 9 describe perfection by control, requiring the electronic money to either be in a deposit account or evidenced through a controllable electronic record. Further amendments to provisions related to UCC Article 9 include updates to governing law provisions for perfection and priority of security interests in chattel paper and in controllable electronic records, controllable accounts, and controllable payment intangibles. (Less)

  • Bill History

  • 01/10/2024 - House: Prefiled and ordered printed; offered 01/10/24 24102847D
  • 01/10/2024 - House: Referred to Committee on Labor and Commerce
  • 01/23/2024 - House: Assigned L & C sub: Subcommittee #2
  • 02/08/2024 - House: Subcommittee recommends reporting (8-Y 0-N)
  • 02/08/2024 - House: Reported from Labor and Commerce (22-Y 0-N)
  • 02/11/2024 - House: Read first time
  • 02/12/2024 - House: Read second time and engrossed
  • 02/13/2024 - House: Read third time and passed House BLOCK VOTE (99-Y 0-N)
  • 02/13/2024 - House: VOTE: Block Vote Passage (99-Y 0-N)
  • 02/14/2024 - Senate: Constitutional reading dispensed
  • 02/14/2024 - Senate: Referred to Committee on Commerce and Labor
  • 03/04/2024 - Senate: Senate committee, floor amendments and substitutes offered
  • 03/04/2024 - Senate: Reported from Commerce and Labor with amendments (14-Y 0-N)
  • 03/05/2024 - Senate: Constitutional reading dispensed (40-Y 0-N)
  • 03/06/2024 - Senate: Read third time
  • 03/06/2024 - Senate: Reading of amendments waived
  • 03/06/2024 - Senate: Committee amendments agreed to
  • 03/06/2024 - Senate: Engrossed by Senate as amended
  • 03/06/2024 - Senate: Passed Senate with amendments (40-Y 0-N)
  • 03/07/2024 - House: Senate amendments agreed to by House (99-Y 0-N)
  • 03/07/2024 - House: VOTE: Adoption (99-Y 0-N)
  • 03/25/2024 - House: Enrolled
  • 03/25/2024 - House: Bill text as passed House and Senate (HB1286ER)
  • 03/25/2024 - Senate: Signed by President
  • 03/26/2024 - House: Signed by Speaker
  • 03/27/2024 - House: Enrolled Bill communicated to Governor on March 27, 2024
  • 03/27/2024 - Governor: Governor's Action Deadline 11:59 p.m., April 8, 2024
  • 04/08/2024 - Governor: Approved by Governor-Chapter 652 (effective 7/1/25)

Full text and vote history:

Virginia Legislative Information System

RichmondSunlight.com

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