SB64: AN ACT relating to the Uniform Commercial Code.

Legislative Summary

Repeal and reenact KRS 355.2-102 to establish transactions subject to provisions of article; amend various sections of Articles 2, 2A, 4A, and 9 of KRS Chapter 355 to remove writing requirements; amend KRS 355.2A-102 to establish when article applies to hybrid leases; amend definition of "negotiable instrument" in KRS 355.3-104; amend KRS 355.3-105 and 355.3-604 to accommodate electronic transactions; amend KRS 355.4A-201 to modify security procedure requirements relating to funds transfers; amend KRS 355.5-116 to establish governing law standards for letters of credit; amend KRS 355.7-106 and 355.8-106, repeal and reenact 355.9-105, and create new sections of Article 9 of KRS Chapter 355, to establish control requirements for electronic documents of title, security entitlements, records evidencing chattel paper, electronic money, controllable electronic records, controllable accounts, and controllable payment intangibles; amend governing law standards for certain securities transactions in KRS 355.8-110; amend KRS 355.9-104 to expand when a security party has control of a deposit account; amend KRS 355.9-204 to establish exception to after-acquired property clause limitation; amend governing law standards for banks and securities and commodity entities in KRS 355.9-304 and 355.9-305; create new sections of Article 9 of KRS Chapter 355 to establish certain perfection and priority jurisdictional rules for chattel paper, controllable electronic records, controllable accounts, and controllable payment intangibles; amend KRS 355.9-203, 355.9-207, 355.9-208, 355.9-209, 355.9-310, 355.9-312, 355.9-314, 355.9-316, 355.9-317, 355.9-330, 355.9-331, 355.9-332, 355.9-406, 355.9-408, 355.9-605, and 355.9-628, and create new sections of Article 9 of KRS Chapter 355, to govern security interests in controllable electronic records, electronic money, controllable accounts, controllable payment intangibles, electronic documents, and chattel paper; amend KRS 355.9-323 to remove exception for buyers and lessees in the ordinary course of business relating to certain future advances clauses; amend notification of disposition of collateral requirements in KRS 355.9-613 and 355.9-614; establish a new Article 12 of KRS Chapter 355, titled "Controllable Electronic Records"; establish definitions, scope, purchaser rights, control requirements, debtor discharge obligations, and jurisdictional rules relating to controllable electronic records, controllable accounts, and controllable payment intangibles; create a new section of Article 11 of KRS Chapter 355; title Article 11 "Transitional Provisions for Uniform Commercial Code Amendments (2022)"; establish definitions and transitional provisions for transactions, liens, and interests entered, created, or acquired before the effective date of this Act; amend various sections of Articles 1, 2, 2A, 3, 5, 7, 8, and 9 of KRS Chapter 355 to make definitional revisions and conforming amendments; amend KRS 367.976 and 369.116 to conform; make technical corrections throughout; EFFECTIVE January 1, 2024.