LOU LEG Updates to UCC Provisions

On May 31, LOU LEG passed bill to make various UCC updates.

  • LOU LEG passed SB 110 to amend provisions of the Uniform Commercial Code (UCC).
  • Provides for certain assets and transactions subject to the Uniform Commercial Code.
  • Amends LOU LEG 10:1-201 to define various terms: conspicuous, delivery, electronic, holder, money, person, send, sign, signature, value, negotiable instrument, others.
  • Updated LOU LEG 10:3-604 re liability on a instrument; provides that discharge must be by cancellation or renunciation not simply by destruction of the instrument.
  • Other Bill Provisions
  • Sets forth new definitions of controllable account, controllable electronic record, and controllable payment intangible; excludes as financial assets under most facts.
  • May require that a payment order be sent from a known email address, IP address or telephone even those such requirement is not, by itself a security procedure.
  • A security procedure may impose an obligation on the receiving bank or the customer and may require the use of algorithms or other codes, identifying words, or numbers.
  • Also symbols, sounds, biometrics, encryption, callback procedures, or similar devices.
  • Provides conditions under which a person has control of an electronic document of title
  • Legislative History
  • On Mar. 11, 2024, bill introduced in Senate; on Apr. 3, 2024, bill passed Senate.
  • On Apr. 4, 2024, bill introduced in House; ion May 28, 2024, bill passed House.
  • On May 31, 2024, bill was delivered to the governor, and is pending governor action.
  • Effectiveness
  • If enacted, bill becomes effective on Aug. 1 of the year the bill passed the legislature.
  • Jun. 2024 LOU LEG Governor Approval
  • On Jun. 26, 2024, LOU LEG reported governor approved bill SB 110, became Act 773.

Regulators LOU LEG
Entity Types CNSM; Corp
Reference Act 773, 6/26/2024, Act 773, 6/26/2024; Bill SB110, 5/31/2024; Citation: *LOU LEG* 10:1-201, 10:3-604;
Functions Compliance; Financial; Legal; Operations
Countries United States of America
Products Corporate
Regions Am
Rule Type Final
Rule Date 5/31/2024
Effective Date 8/1/2024
Rule Id 214529
Linked to N/A
Reg. Last Update 6/26/2024
Report Section US Consumer

Last substantive update on 06/30/2024