HB 34 Changes the laws regarding the Uniform Commercial Code to adopt the current version of Articles 1 and 7

     Handler: Dixon

Current Bill Summary

- Prepared by Senate Research -


HB 34 - This act makes numerous changes to Articles 1 and 7 of the Uniform Commercial Code to conform to the most recent revision. More specifically, it also makes several changes to definitions of both articles. Furthermore, it adds the following provisions:

• New language is added throughout Article 7 to accommodate references to electronic documents;

• New language is added as it pertains to the subordination of obligations, which was not previously adopted when the UCC was initially enacted in 1963;

• New conflicts of laws provisions are added to Article 7 to clarify when the UCC applies to certain transactions;

• The act further modifies provisions relating to the contractual limitation of a carrier's liability;

• Language is inserted in Article 7 which references a lessor's right to stop delivery;

• New language is added pertaining to the voidance of transfers of nonnegotiable documents.

This act is substantially similar to SB 1097 (2016) and HB 2590 (2016).

SCOTT SVAGERA


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