On Apr. 8, 2024, VA LEG governor approved bill as Ch. 652, effective Jul. 1, 2025.
On Mar. 7, VA LEG issued bill to accommodate emerging technologies.
VA LEG passed bill HB 1286 to amend provisions of the uniform commercial code.
Makes a number of amendments to Uniform Commercial Code (UCC) (VA LEG 8.1A-2 through VA LEG 8.9A, and would add new sections VA LEG 8.12, VA LEG 8.13.
Makes extensive amendments in provisions related to article 9 to accommodate emerging technologies, including digital assets, such as controllable electronic records.
Bill Provisions
Definition of money is amended to include intangible assets, and perfection by control, requires money to be in a deposit account or evidenced in electronic record.
Also made amendments related to security interests in chattel paper and in controllable electronic records, controllable accounts, controllable payment intangibles.
Defines controllable electronic records, and explains the payment rights of a purchaser.
The bill provides that to transfer the economic value associated with the controllable electronic record, a person must have control of the controllable electronic record.
Also describes qualifying purchasers of controllable electronic records, debtor security interests in relation to person identified as in control of controllable electronic record.
Legislative History
On Jan. 10, 2024, bill introduced in House; on Feb. 13, 2024, bill passed in House.
On Feb. 14, 2024, bill introduced in Senate; on Mar. 6, 2024, bill passed in Senate.
On Mar. 7, 2024, House agreed to Senate amendments; amendments passed House.
Effectiveness
Takes effect on Jul. 1, 2024; may provide adjustment date of one year after effective date to allow persons to perfect their interests that may otherwise be affected or lost.
Apr. 2024 VA LEG Governor Approval
On Apr. 8, 2024, VA LEG governor approved bill as Ch. 652, effective Jul. 1, 2025.
