HB 6970 — AN ACT CONCERNING ADOPTION OF AMENDMENTS TO THE UNIFORM COMMERCIAL CODE.

809 (A) Execute or adopt a tangible symbol;

[(43)](44)"Written"or"writing"includesprinting,typewriting[(43)](44)"Written"or"writing"includesprinting, typewriting or any otherPublic intentionalAct reductionNo. to tangible form.

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6970 other intentional reduction to tangible form.

sHB6970or /(4) FileIn No.return for any consideration sufficient to support a simple contract.

809 8 sHB6970 File No.

809 or (4) In return for any consideration sufficient to support a simple contract.

T1 Rights of creditors sold goods.

Section 42a-2-402, as amended by this T2 act.

T3 Applicability of the article on leases.

Sections 42a-2A-105 and T4 42a-2A-106.

T5Public ApplicabilityAct ofNo. the article on bank deposits and collections.

T625-145 Section9 42a-4-102.of 166 Substitute House Bill No.

T76970 GoverningApplicability lawof in the article on fundsbank transfers.deposits and collections.

Section 42a-4-102.

Governing law in the article on funds transfers.

T8 Letters of credit.

T9 Applicability of the article on investment securities.

Section 42a-8-110, T10 as amended by this act.

T11 Law governing perfection, the effect of perfection or nonperfection T12 and the priority of security interests and agricultural liens.

T13 Sections 42a-9-301 to 42a-9-307, inclusive, as amended by this act.

T14 Law specifying the governing law for controllable electronic records.

T15 Section 92 of this act.

sHB6970[Unless /the Filecontext No.otherwise requires, this article applies to transactions in goods;

809 9 sHB6970 File No.

809 [Unless the context otherwise requires, this article applies to transactions in goods;

(1)Public IfAct theNo. sale of goods aspects do not predominate, only the provisions of this article which relate primarily to the sale of goods aspects of the transaction apply, and the provisions that relate primarily to the transaction as a whole do not apply.

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6970 (1) If the sale of goods aspects do not predominate, only the provisions of this article which relate primarily to the sale of goods aspects of the transaction apply, and the provisions that relate primarily to the transaction as a whole do not apply.

(1) In this article unless the context otherwise requires "contract" and "agreement" are limited to those relating to the present or future sale of sHB6970goods. / File No.

809 10 sHB6970 File No.

809 goods.

(3) "Termination" occurs when either party pursuant to a power createdPublic byAct agreementNo. or law puts an end to the contract otherwise than for its breach.

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6970 created by agreement or law puts an end to the contract otherwise than for its breach.

(1) Except as otherwise provided in this section, a contract for the sale of goods for the price of five hundred dollars or more is not enforceable by way of action or defense unless there is [some writing] a record sufficient to indicate that a contract for sale has been made between the parties and signed by the party against whom enforcement is sought or sHB6970by /his Fileauthorized No.agent or broker.

809 11 sHB6970 File No.

809 by his authorized agent or broker.

(2) Between merchants if within a reasonable time a [writing] record in confirmation of the contract and sufficient against the sender is received and the party receiving it has reason to know its contents, it satisfiesPublic theAct requirementsNo. of subsection (1) of this section against [such] the party unless written notice in a record of objection to its contents is given within ten days after it is received.

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6970 satisfies the requirements of subsection (1) of this section against [such] the party unless written notice in a record of objection to its contents is given within ten days after it is received.

Terms with respect to which the confirmatory memoranda of the parties agree or which are otherwise set forth in a [writing] record intended by the parties as a final expression of their agreement with respect to such terms as are included therein may not be contradicted by evidence of any prior agreement or of a contemporaneous oral agreement but may be explained or supplemented (a) by course of performance, course of dealing or usage of trade as provided by section sHB697042a-1-303; / File No.

809 12 sHB6970 File No.

809 42a-1-303;

Section 42a-2-203 of the general statutes is repealed and the followingPublic isAct substitutedNo. in lieu thereof (Effective January 1, 2026):

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6970 following is substituted in lieu thereof (Effective January 1, 2026):

sHB6970(1) /"Authenticate" Filemeans: No.

809 13 sHB6970 File No.

809 (1) "Authenticate" means:

or (B)Public ToAct executeNo. or otherwise adopt a symbol, or encrypt or similarly process a record in whole or in part, with the present intent of the authenticating person to identify the person and adopt or accept a record.

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6970 (B) To execute or otherwise adopt a symbol, or encrypt or similarly process a record in whole or in part, with the present intent of the authenticating person to identify the person and adopt or accept a record.

sHB6970(A) /With Filerespect No.to a person:

809Public 14Act sHB6970 File No.

80925-145 (A)15 Withof respect166 toSubstitute aHouse person:Bill No.

6970 (i) A heading in capitals in a size equal to or greater than, or in contrasting type, font or color to, the surrounding text;

(11) "Electronic agent" means a computer program or electronic or otherPublic automatedAct means used to initiate an action or to respond to sHB6970 / File No.

80925-145 1516 sHB6970of File166 Substitute House Bill No.

8096970 other automated means used to initiate an action or to respond to electronic messages or performances without intervention by an individual at the time of the action or response.

(iii) The lessee, before authenticating the lease agreement, receives an accurate and complete statement designating the promises and warranties, and any disclaimers of warranties, limitations or modifications of remedies, or liquidated damages, including those of a third party, such as the manufacturer of the goods, provided to the lessorPublic byAct theNo. person supplying the goods in connection with or as part of the contract by which the lessor acquired the goods or the right to possession and use of the goods;

or25-145 sHB697017 /of File166 Substitute House Bill No.

8096970 16lessor sHB6970by Filethe No.person supplying the goods in connection with or as part of the contract by which the lessor acquired the goods or the right to possession and use of the goods;

809or (iv) If the lease is not aconsumer lease, before the lessee authenticates the lease agreement, the lessor informs the lessee in writing:

(B)Public AAct saleNo. of other goods;

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6970 (B) A sale of other goods;

[(16)] (17) "Information processing system" means an electronic system for creating, generating, sending, receiving, storing, displaying sHB6970or /processing Fileinformation. No.

809 17 sHB6970 File No.

809 or processing information.

[(22)] (23) "Lessee in ordinary course of business" means a person that, in good faith and without knowledge that the person's lease is in violationPublic ofAct ownershipNo. rights, a security interest or a leasehold interest of a third party in the goods, leases in the ordinary course from a person in the business of selling or leasing goods of that kind for cash or by exchange of other property or on secured or unsecured credit, including acquiring goodsor documents of title under apreexisting lease contract, but not including a transfer inbulk,or assecurityfororintotalor partial satisfaction of a money debt.

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6970 violation of ownership rights, a security interest or a leasehold interest of a third party in the goods, leases in the ordinary course from a person in the business of selling or leasing goods of that kind for cash or by exchange of other property or on secured or unsecured credit, including acquiring goodsor documents of title under apreexisting lease contract, but not including a transfer inbulk,or assecurityfororintotalor partial satisfaction of a money debt.

[(23)] (24) "Lessor" means a person that transfers the right to sHB6970possessionanduseofgoodsunderalease.Thetermincludesasublessor /unless Filethe No.context clearly indicates otherwise.

809 18 sHB6970 File No.

809 possessionanduseofgoodsunderalease.Thetermincludesasublessor unless the context clearly indicates otherwise.

[(29)]Public (30)Act "Receive"No. means:

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6970 [(29)] (30) "Receive" means:

(I) To be delivered at the person's residence, or the person's place of sHB6970business /through Filewhich No.the contract was made, or at any other place held out by the person as a place for the receipt of such notices;

809 19 sHB6970 File No.

809 business through which the contract was made, or at any other place held out by the person as a place for the receipt of such notices;

Receipt within the time in which it would have arrived if properly sent has the effect of a properPublic sending.Act No.

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6970 proper sending.

[(34)] (35) "Termination" means the ending of a contract or a part thereof by an act by a party under a power created by agreement or law, or by operation of the terms of the agreement for a reason other than for sHB6970a /default Fileby No.the other party.

809 20 sHB6970 File No.

809 a default by the other party.

T16 "Account".

T17 "Between merchants".

T18 "Buyer".

T19 "Chattel paper".

T20 "Consumer goods".

T21 "Document".

T22 "Entrusting".

T23 "General intangible".

T24 "Instrument".

T25Public "Merchant".Act No.

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6970 "Merchant".

T26 "Mortgage".

T27 "Pursuant to commitment".

T28 "Sale".

T29 "Sale on approval".

T30 "Sale or return".

T31 "Seller".

sHB6970(2) /In Filea No.hybrid lease:

809 21 sHB6970 File No.

809 (2) In a hybrid lease:

and (b) If the lease of goods aspects predominate, this article applies to the transaction, but does not preclude application in appropriate circumstances of other law to aspects of the lease which do not relate to thePublic leaseAct ofNo. goods.

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6970 the lease of goods.

and (3) Does not state any other undertaking or instruction by the person promising or ordering payment to do any act inadditionto thepayment of money, but the promise or order may contain (i) an undertaking or power to give, maintain, or protect collateral to secure payment, (ii) an authorization or power to the holder to confess judgment or realize on or dispose of collateral, [or] (iii) a waiver of the benefit of any law sHB6970intended /for Filethe No.advantage or protection of an obligor, (iv) a term that specifies the law that governs the promise or order, or (v) an undertaking to resolve in a specified forum a dispute concerning the promise or order.

809 22 sHB6970 File No.

809 intended for the advantage or protection of an obligor, (iv) a term that specifies the law that governs the promise or order, or (v) an undertaking to resolve in a specified forum a dispute concerning the promise or order.

[the] (1) The first delivery of an instrument by the maker or drawer, whether to a holder or nonholder, for the purpose of giving rights on thePublic instrumentAct toNo. any person;

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6970 the instrument to any person;

(a) A person entitled to enforce an instrument, with or without sHB6970consideration, /may Filedischarge No.the obligation of a party to pay the instrument (i) by an intentional voluntary act, such as surrender of the instrument to the party, destruction, mutilation, or cancellation of the instrument, cancellation or striking out of the party's signature, or the addition of words to the instrument indicating discharge, or (ii) by agreeing not to sue or otherwise renouncing rights against the party by a signed writing.

809The 23obligation sHB6970of Filea party to pay a check is not discharged solely by destruction of the check in connection with a process in which information is extracted from the check and an image of the check is made and, subsequently, the information and image are Public Act No.

80925-145 consideration,25 may discharge the obligation of a166 partySubstitute toHouse payBill theNo. instrument (i) by an intentional voluntary act, such as surrender of the instrument to the party, destruction, mutilation, or cancellation of the instrument, cancellation or striking out of the party's signature, or the addition of words to the instrument indicating discharge, or (ii) by agreeing not to sue or otherwise renouncing rights against the party by a signed writing.

The6970 obligation of a party to pay a check is not discharged solely by destruction of the check in connection with a process in which information is extracted from the check and an image of the check is made and, subsequently, the information and image are transmitted for payment.

Subdivision (1) of subsection (a) of section 42a-4a-10342a-4A-103 of the general statutes is repealed and the following is substituted in lieu thereof (Effective January 1, 2026):

A security procedure may impose an obligation on the receiving bank or the customer and may require the use of algorithms or other codes, sHB6970identifying /wordsor Filenumbers, No.symbols,sounds,biometrics, encryption, callback procedures, or similar security devices.

809 24 sHB6970 File No.

809 identifying wordsor numbers, symbols,sounds,biometrics, encryption, callback procedures, or similar security devices.

Sec.Public Act No.

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6970 Sec.

Subsections (b) and (c) of section 42a-4a-20242a-4A-202 of the general statutes are repealed and the following is substituted in lieu thereof (Effective January 1, 2026):

A security procedure is deemed to be commercially reasonable if (i) the security procedure was chosen by the customer after the bank offered, and the sHB6970customer /refused, Filea security procedure that was commercially reasonable for that customer, and (ii) the customer expressly agreed in [writing] a record to be bound by any payment order, whether or not authorized, issued in its name and accepted by the bank in compliance Public Act No.

80925-145 2527 sHB6970of File166 Substitute House Bill No.

8096970 customer refused, a security procedure that was commercially reasonable for that customer, and (ii) the customer expressly agreed in [writing] a record to be bound by any payment order, whether or not authorized, issued in its name and accepted by the bank in compliance with the bank's obligations under the security procedure chosen by the customer.

Subdivision (1) of subsection (a) of section 42a-4a-20342a-4A-203 of the general statutes is repealed and the following is substituted in lieu thereof (Effective January 1, 2026):

(1) If the originator is abank,a bank, the originator isobliged to pay its order.

The originator's bank satisfies the burden of proof if it proves that the originator, before the payment order was accepted, signed a sHB6970[writing] /record Filestating No.the information to which the notice relates.

809Public 26Act sHB6970 File No.

80925-145 [writing]28 recordof stating166 theSubstitute informationHouse toBill whichNo. the notice relates.

6970 Sec.

Subdivision (2) of subsection (b) of section 42A-4A-20842a-4A-208 of the general statutes is repealed and the following is substituted in lieu thereof (Effective January 1, 2026):

Subsection (a) of section 42a-4a-21042a-4A-210 of the general statutes is repealedandthefollowingissubstitutedinlieuthereof(EffectiveJanuary 1, 2026):

Sec.Public Act No.

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6970 Sec.

Subsection (a) of section 42a-4a-21142a-4A-211 of the general statutes is sHB6970repealedandthefollowingissubstitutedinlieuthereof(EffectiveJanuary /1, File2026): No.

809(a) 27A sHB6970communication Fileof No.the sender of a payment order cancelling or amending the order may be transmitted to the receiving bank orally [, electronically,]or in [writing]arecord.Ifasecurity procedure isineffect between the sender and the receiving bank, the communication is not effective to cancel or amend the order unless the communication is verified pursuant to the security procedure or the bank agrees to the cancellation or amendment.

809 repealedandthefollowingissubstitutedinlieuthereof(EffectiveJanuary 1, 2026):

(a) A communication of the sender of a payment order cancelling or amending the order may be transmitted to the receiving bank orally [, electronically,]or in[writing]arecord.Ifasecurity procedure isineffect between the sender and the receiving bank, the communication is not effective to cancel or amend the order unless the communication is verified pursuant to the security procedure or the bank agrees to the cancellation or amendment.

Subsections (c) and (d) of section 42a-4a-30542a-4A-305 of the general statutes are repealed and the following is substituted in lieu thereof (Effective January 1, 2026):

[and is authenticated (i) by a signature, or (ii) in accordance with the agreement ofPublic theAct partiesNo. or the standard practice referred to in subsection (e) of section 42a-5-108.] Sec.

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6970 of the parties or the standard practice referred to in subsection (e) of section 42a-5-108.] Sec.

Section 42a-5-116 of the general statutes is repealed and the sHB6970following /is Filesubstituted No.in lieu thereof (Effective January 1, 2026):

809 28 sHB6970 File No.

809 following is substituted in lieu thereof (Effective January 1, 2026):

[(c)] (e) Except as otherwise provided in this subsection, the liability ofPublic anAct issuer,No. nominated person or adviser is governed by any rules of custom or practice, such as the Uniform Customs and Practice for Documentary Credits,to whichtheletter ofcredit,confirmationor other undertaking is expressly made subject.

If25-145 (i)31 this article would govern the liability of an166 issuer,Substitute nominatedHouse personBill or adviser under subsection (a) or (b) of this section, (ii) the relevant undertaking incorporates rules sHB6970 / File No.

8096970 29of sHB6970an Fileissuer, No.nominated person or adviser is governed by any rules of custom or practice, such as the Uniform Customs and Practice for Documentary Credits,to whichtheletter ofcredit,confirmationor other undertaking is expressly made subject.

809If (i) this article would govern the liability of an issuer, nominated person or adviser under subsection (a) or (b) of this section, (ii) the relevant undertaking incorporates rules of custom or practice, and (iii) there is conflict between this article and those rules as applied to that undertaking, those rules govern except to the extent of any conflict with the nonvariable provisions specified in subsection (c) of section 42a-5-103.

(4)"Consignor"meansapersonnamedinabillofladingastheperson fromPublic whichAct theNo. goods have been received for shipment.

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6970 from which the goods have been received for shipment.

(7) "Goods" means all things that are treated as movable for the sHB6970purposes /of Filea No.contract for storage or transportation.

809 30 sHB6970 File No.

809 purposes of a contract for storage or transportation.

or (B) To attach to or logically associate with the record an electronic sound, symbol or process.] [(12)]Public (10)Act "Shipper"No. means a person that enters into a contract of transportation with a carrier.

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6970 [(12)] (10) "Shipper" means a person that enters into a contract of transportation with a carrier.

(a) A person has control of an electronic document of title if a system employed for evidencing the transfer of interests in the electronic document reliably establishes that person as the person to which the sHB6970electronic /document Filewas No.issued or transferred.

809 31 sHB6970 File No.

809 electronic document was issued or transferred.

(4) Copies or amendments that add or change an identified [assignee] transferee of the authoritative copy can be made only with the consent ofPublic theAct personNo. asserting control;

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6970 of the person asserting control;

sHB6970(2) /Enables Filethe No.person readily to identify itself in any way, including by name, identifying number, cryptographic key, office or account number, as the person to which each authoritative electronic copy was issued or transferred;

809 32 sHB6970 File No.

809 (2) Enables the person readily to identify itself in any way, including by name, identifying number, cryptographic key, office or account number, as the person to which each authoritative electronic copy was issued or transferred;

(1) The authoritative electronic copy, a record attached to or logically associated with the authoritative electronic copy or a system in which the authoritative electronic copy is recorded limits the use of the documentPublic ofAct titleNo. or has a protocol that is programmed to cause a change, including a transfer or loss of control;

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6970 document of title or has a protocol that is programmed to cause a change, including a transfer or loss of control;

sHB6970(g) /A Fileperson No.has control of an electronic document of title if another person, other than the transferor to the person of an interest in the document:

809 33 sHB6970 File No.

809 (g) A person has control of an electronic document of title if another person, other than the transferor to the person of an interest in the document:

(i)If a personacknowledgesthat it hasor willobtaincontrolonbehalf of another person, unless the person otherwise agrees or law other than this article or article 9, as amended by this act, otherwise provides, the personPublic doesAct notNo. owe any duty to the other person and is not required to confirm the acknowledgment to any other person.

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6970 person does not owe any duty to the other person and is not required to confirm the acknowledgment to any other person.

sHB6970(5) /"Clearing Filecorporation" No.means:

809 34 sHB6970 File No.

809 (5) "Clearing corporation" means:

or (C) Any other person that provides clearance or settlement services with respect to financial assets that would require it to register as a clearing agency under the federal securities laws but for an exclusion or exemption from the registration requirement, if its activities as a clearing corporation, including promulgation of rules, are subject to regulationPublic byAct aNo. federal or state governmental authority.

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6970 regulation by a federal or state governmental authority.

(B) an obligation of sHB6970a /person Fileor No.a share, participation or other interest in a person or in property or an enterprise of a person, which is, or is of a type, dealt in or traded on financial markets, or which is recognized in any area in which it is issued or dealt in as a medium for investment;

809 35 sHB6970 File No.

809 a person or a share, participation or other interest in a person or in property or an enterprise of a person, which is, or is of a type, dealt in or traded on financial markets, or which is recognized in any area in which it is issued or dealt in as a medium for investment;

As context requires, the term means either the interestPublic itselfAct orNo. the means by which a person's claim to it is evidenced, including a certificated or uncertificated security, a security certificate, or a security entitlement.

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6970 interest itself or the means by which a person's claim to it is evidenced, including a certificated or uncertificated security, a security certificate, or a security entitlement.

sHB6970(A) /Which Fileis No.represented by a security certificate in bearer or registered form, or the transfer of which may be registered upon books maintained for that purpose by or on behalf of the issuer;

809(B) 36Which sHB6970is Fileone of a class or series or by its terms is divisible into a Public Act No.

80925-145 (A)39 Which is represented by a security certificate in bearer or registered form, or the transfer of which166 maySubstitute beHouse registeredBill uponNo. books maintained for that purpose by or on behalf of the issuer;

(B)6970 Which is one of a class or series or by its terms is divisible into a class or series of shares, participations, interests or obligations;

T32 "Appropriate person".

T33 "Control".

T34 "Controllable account".

T35 "Controllable electronic record".

T36 "Controllable payment intangible".

T37 "Delivery".

T38 "Investment company security".

T39 "Issuer".

T40 "Overissue".

T41 "Protected purchaser".

sHB6970"Securities /account". File No.

809 37 sHB6970 File No.

809 T42 "Securities account".

(c)Public InAct addition,No. article 1 contains general definitions and principles of construction and interpretation applicable throughout this article.

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6970 (c) In addition, article 1 contains general definitions and principles of construction and interpretation applicable throughout this article.

(e)Public AnAct option or similar obligation issued by a clearing corporation to sHB6970 / File No.

80925-145 3841 sHB6970of File166 Substitute House Bill No.

8096970 (e) An option or similar obligation issued by a clearing corporation to its participants is not a security, but is a financial asset.

or (2) The issuer has agreed that it will comply with instructions originated by the purchaser without further consent by the registered owner.Public Act No.

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6970 owner.

sHB6970(2) /The Filesecurities No.intermediary has agreed that it will comply with entitlement orders originated by the purchaser without further consent by the entitlement holder;

809 39 sHB6970 File No.

809 (2) The securities intermediary has agreed that it will comply with entitlement orders originated by the purchaser without further consent by the entitlement holder;

(g)Public AnAct issuerNo. or a securities intermediary may not enter into an agreement of the kind described in [subsection (c)(2) or (d)(2)] subdivision (2) of subsection (c) of this section or subdivision (2) of subsection(d) ofthissectionwithouttheconsentoftheregisteredowner or entitlement holder, but an issuer or a securities intermediary is not required to enter into such an agreement even though the registered owner or entitlement holder so directs.

An25-145 issuer43 orof securities166 sHB6970Substitute /House FileBill No.

8096970 40(g) sHB6970An Fileissuer No.or a securities intermediary may not enter into an agreement of the kind described in [subsection (c)(2) or (d)(2)] subdivision (2) of subsection (c) of this section or subdivision (2) of subsection(d) ofthissectionwithouttheconsentoftheregisteredowner or entitlement holder, but an issuer or a securities intermediary is not required to enter into such an agreement even though the registered owner or entitlement holder so directs.

809An issuer or securities intermediary that has entered into such an agreement is not required to confirm the existence of the agreement to another party unless requested to do so by the registered owner or entitlement holder.

(2)Public DoesAct notNo. have notice of any adverse claim to the security;

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6970 (2) Does not have notice of any adverse claim to the security;

sHB6970(a) /In Filethis No.article:

809 41 sHB6970 File No.

809 (a) In this article:

The term does not include (i) [rights to payment evidenced by chattel paper or an instrument] chattel paper, (ii) commercial tort claims, (iii) deposit accounts, (iv) investment property, (v) letter-of- creditPublic rightsAct orNo. letters of credit, [or] (vi) rights to payment for money or funds advanced or sold, other than rights arising out of the use of a credit or charge card or information contained on or for use with the card, or (vii) rights to payment evidenced by an instrument.

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6970 credit rights or letters of credit, [or] (vi) rights to payment for money or funds advanced or sold, other than rights arising out of the use of a credit or charge card or information contained on or for use with the card, or (vii) rights to payment evidenced by an instrument.

sHB6970(B) /Indicating Filethe No.aggregate unpaid secured obligations as of a date not more than thirty-five days earlier or thirty-five days later than the date of the record;

809 42 sHB6970 File No.

809 (B) Indicating the aggregate unpaid secured obligations as of a date not more than thirty-five days earlier or thirty-five days later than the date of the record;

or (ii)Public LeasedAct realNo. property to a debtor in connection with the debtor's farming operation;

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6970 (ii) Leased real property to a debtor in connection with the debtor's farming operation;

or (B) Accounts arising out of the sale at the wellhead or minehead of sHB6970oil, /gas Fileor No.other minerals in which the debtor had an interest before extraction.

809 43 sHB6970 File No.

809 oil, gas or other minerals in which the debtor had an interest before extraction.

(8)Public "Assignor"Act meansNo. a person that (i) under a security agreement creates or provides for a security interest that secures an obligation, or (ii) sells an account, chattel paper, payment intangible or promissory note.

25-145 47 of 166 Substitute House Bill No.

6970 (8) "Assignor" means a person that (i) under a security agreement creates or provides for a security interest that secures an obligation, or (ii) sells an account, chattel paper, payment intangible or promissory note.

The term includes another record maintained as an alternative to a certificate of title by the governmental unit that issues sHB6970certificates /of Filetitle No.if a statute permits the security interest in question to be indicated on the record as a condition or result of the security interest's obtaining priority over the rights of a lien creditor with respect to the collateral.

809 44 sHB6970 File No.

809 certificates of title if a statute permits the security interest in question to be indicated on the record as a condition or result of the security interest's obtaining priority over the rights of a lien creditor with respect to the collateral.

The term does not include (i) charters or other contracts involving the use or hire of a vessel, or (ii) records that evidencePublic aAct rightNo. to payment arising out of the use of a credit or charge card or information contained on or for use with the card.

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6970 evidence a right to payment arising out of the use of a credit or charge card or information contained on or for use with the card.

[(12)] (13) "Collateral" means the property subject to a security sHB6970interest /or Fileagricultural No.lien.

809 45 sHB6970 File No.

809 interest or agricultural lien.

or (B)Public TheAct claimantNo. is an individual and the claim:

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6970 (B) The claimant is an individual and the claim:

sHB6970[(17)] /(18) File"Commodity No.intermediary" means a person that:

809 46 sHB6970 File No.

809 [(17)] (18) "Commodity intermediary" means a person that:

(A)Public ToAct sendNo. a written or other tangible record;

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6970 (A) To send a written or other tangible record;

sHB6970and /(D) FileThe No.transaction does not create a security interest that secures an obligation.

809 47 sHB6970 File No.

809 and (D) The transaction does not create a security interest that secures an obligation.

[(22)]Public (23)Act "ConsumerNo. debtor" means a debtor in a consumer transaction.

25-145 51 of 166 Substitute House Bill No.

6970 [(22)] (23) "Consumer debtor" means a debtor in a consumer transaction.

and sHB6970(B) /Indicates Filethat No.it is a continuation statement for, or that it is filed to continue the effectiveness of, the identified financing statement.

809(29) 48"Controllable sHB6970account" Filemeans an account evidenced by a Public Act No.

80925-145 (B)52 Indicatesof that166 itSubstitute isHouse aBill continuationNo. statement for, or that it is filed to continue the effectiveness of, the identified financing statement.

(29)6970 "Controllable account" means an account evidenced by a controllable electronic record that provides that the account debtor undertakes to pay the person that has control, under section 90 of this act, of the controllable electronic record.

sHB6970Public /Act File No.

80925-145 4953 sHB6970of File166 Substitute House Bill No.

8096970 [(33)] (36) "Equipment" means goods other than inventory, farm products or consumer goods.

[(37)] (40) "Filing office" means an office designated in section 42a-9- 501 as the place to file a financing statement.

[(40)]Public (43)Act "FixtureNo. filing" means the filing of a financing statement covering goods that are or are to become fixtures and satisfying subsections (a) and (b) of section 42a-9-502.

The25-145 term54 includesof the166 filingSubstitute sHB6970House /Bill File No.

8096970 50[(40)] sHB6970(43) File"Fixture No.filing" means the filing of a financing statement covering goods that are or are to become fixtures and satisfying subsections (a) and (b) of section 42a-9-502.

809The term includes the filing of a financing statement covering goods of a transmitting utility which are or are to become fixtures.

The term does not include a computer program embedded in goodsPublic thatAct consistNo. solely of the medium in which the program is embedded.

25-145 55 of 166 Substitute House Bill No.

6970 goods that consist solely of the medium in which the program is embedded.

sHB6970[(45)] /(48) File"Governmental No.unit" means a subdivision, agency, department, county, parish, municipality, or other unit of the government of the United States, a state or a foreign country.

809 51 sHB6970 File No.

809 [(45)] (48) "Governmental unit" means a subdivision, agency, department, county, parish, municipality, or other unit of the government of the United States, a state or a foreign country.

or (D)Public ConsistAct ofNo. raw materials, work in process or materials used or consumed in a business.

25-145 56 of 166 Substitute House Bill No.

6970 (D) Consist of raw materials, work in process or materials used or consumed in a business.

[(50)] (53) "Jurisdiction of organization", with respect to a registered sHB6970organization, /means Filethe No.jurisdiction under whose law the organization is formed or organized.

809 52 sHB6970 File No.

809 organization, means the jurisdiction under whose law the organization is formed or organized.

(A) That creates a purchase-money security interest in a manufacturedPublic home,Act otherNo. than a manufactured home held as inventory;

25-145 57 of 166 Substitute House Bill No.

6970 manufactured home, other than a manufactured home held as inventory;

sHB6970[(55)] /(59) File"Mortgage" No.means a consensual interest in real property, including fixtures, which secures payment or performance of an obligation.

809 53 sHB6970 File No.

809 [(55)] (59) "Mortgage" means a consensual interest in real property, including fixtures, which secures payment or performance of an obligation.

[(60)](64)"Originaldebtor",exceptPublic asusedinsubsection(c)ofsectionAct 42a-9-310,No. means a person that, as debtor, entered into a security agreement to which a new debtor has become bound under subsection (d) of section 42a-9-203.

25-145 58 of 166 Substitute House Bill No.

6970 [(60)](64)"Originaldebtor",except asusedinsubsection(c)ofsection 42a-9-310, means a person that, as debtor, entered into a security agreement to which a new debtor has become bound under subsection (d) of section 42a-9-203.

sHB6970(C) /An Fileancestor No.or lineal descendant of the individual or the individual's spouse;

809 54 sHB6970 File No.

809 (C) An ancestor or lineal descendant of the individual or the individual's spouse;

or (E) An individual who is related by blood or marriage to an individual described in subparagraph (A), (B), (C) or (D) and shares the samePublic homeAct withNo. the individual.

25-145 59 of 166 Substitute House Bill No.

6970 same home with the individual.

or (E) To the extent of the value of collateral and to the extent payable to the debtor or the secured party, insurance payable by reason of the loss sHB6970or /nonconformity Fileof, No.defects or infringement of rights in, or damage to, the collateral.

809 55 sHB6970 File No.

809 or nonconformity of, defects or infringement of rights in, or damage to, the collateral.

[(66)](70)"Proposal"meansarecordauthenticatedbyasecured[(66)](70)"Proposal"meansarecordauthenticatedbyasecuredparty party which includes the terms on which the secured party is willing to accept collateral in full or partial satisfaction of the obligation it secures pursuant to sections 42a-9-620, as amended by this act, 42a-9-621, as amended by this act, and 42a-9-622.

(B)Public AllAct orNo. a portion of the securities issued have an initial stated maturity of at least twenty years;

25-145 60 of 166 Substitute House Bill No.

6970 (B) All or a portion of the securities issued have an initial stated maturity of at least twenty years;

(B) An organic record of a business trust consisting of the record initially filed with a state and any record filed with the state which amends or restates the initial record, if a statute of the state governing sHB6970business /trusts Filerequires No.that the record be filed with the state;

809 56 sHB6970 File No.

809 business trusts requires that the record be filed with the state;

[(70)] (74) "Record", except as used in "for record", "of record", "record or legal title" and "record owner", means information that is inscribed onPublic aAct tangibleNo. medium or which is stored in an electronic or other medium and is retrievable in perceivable form.

25-145 61 of 166 Substitute House Bill No.

6970 on a tangible medium or which is stored in an electronic or other medium and is retrievable in perceivable form.

sHB6970(A) /A Fileperson No.in whose favor a security interest is created or provided for under a security agreement, whether or not any obligation to be secured is outstanding;

809 57 sHB6970 File No.

809 (A) A person in whose favor a security interest is created or provided for under a security agreement, whether or not any obligation to be secured is outstanding;

or (F)Public AAct personNo. that holds a security interest arising under section 42a- 2-401, section 42a-2-505, subsection (3) of section 42a-2-711, subsection (d) of section 42a-2A-724, section 42a-4-210 or section 42a-5-118.

25-145 62 of 166 Substitute House Bill No.

6970 (F) A person that holds a security interest arising under section 42a- 2-401, section 42a-2-505, subsection (3) of section 42a-2-711, subsection (d) of section 42a-2A-724, section 42a-4-210 or section 42a-5-118.

[(77)] (80) "State" means a state of the United States, the District of sHB6970Columbia, /Puerto FileRico, No.the United States Virgin Islands or any territory or insular possession subject to the jurisdiction of the United States.

809 58 sHB6970 File No.

809 Columbia, Puerto Rico, the United States Virgin Islands or any territory or insular possession subject to the jurisdiction of the United States.

[(79) "Tangible chattel paper" means chattel paper evidenced by a record or records consisting of information that is inscribed on a tangible medium.] (82)Public "TangibleAct money"No. means money in a tangible form.

25-145 63 of 166 Substitute House Bill No.

6970 (82) "Tangible money" means money in a tangible form.

(b)"Control"asprovidedinsection42a-7-106, asamended by thisact, sHB6970and /the Filefollowing No.definitions in other articles apply to this article:

809"Applicant". 59 sHB6970 File No.

809 and the following definitions in other articles apply to this article:

T43 "Applicant".

T44 "Beneficiary".

T45 "Broker".

T46 "Certificated security".

T47 "Check".

T48 "Clearing corporation".

T49 "Contract for sale".

T50Public "ControllableAct electronicNo. record".

25-145 64 of 166 Substitute House Bill No.

6970 "Controllable electronic record".

T51 "Customer".

T52 "Entitlement holder".

T53 "Financial asset".

T54 "Holder in due course".

T55 "Issuer" (with respect to a letter of credit or letter-of-credit right).

T56 "Issuer" (with respect to a security).

T57 "Issuer" (with respect to documents of title).

T58 "Lease".

T59 "Lease agreement".

T60 "Lease contract".

T61 "Leasehold interest".

T62 "Lessee".

T63 "Lessee in ordinary course of business".

T64 "Lessor".

T65 "Lessor's residual interest".

T66 "Letter of credit".

T67 "Merchant".

T68 "Negotiable instrument".

T69 "Nominated person".

T70 "Note".

T71 "Proceeds of a letter of credit".

T72 "Protected purchaser".

sHB6970"Prove". / File No.

809 60 sHB6970 File No.

809 T73 "Prove".

T74 "Qualifying purchaser".

T75 "Sale".

T76 "Securities account".

T77 "Securities intermediary".

T78 "Security".

T79Public "SecurityAct certificate".No.

25-145 65 of 166 Substitute House Bill No.

6970 "Security certificate".

T80 "Security entitlement".

T81 "Uncertificated security".

sHB6970(b) /A Filesecured No.party that has satisfied subsection (a) of this section has control, even if the debtor retains the right to direct the disposition of funds from the deposit account.

809Public 61Act sHB6970 File No.

80925-145 (b)66 A secured party that has satisfied subsection (a) of this166 sectionSubstitute hasHouse control,Bill evenNo. if the debtor retains the right to direct the disposition of funds from the deposit account.

6970 Sec.

and (6) Any amendment of the authoritative copy is readily identifiable as authorized or unauthorized.] (a) A purchaser has control of an authoritative electronic copy of a recordevidencing chattelpaperchattel paper ifasystememployedfor evidencing the assignment of interests in the chattel paper reliably establishes the sHB6970purchaser /as Filethe person to which the authoritative electronic copy was Public Act No.

80925-145 6267 sHB6970of File166 Substitute House Bill No.

8096970 purchaser as the person to which the authoritative electronic copy was assigned.

(2) Enables the purchaser readily to identify itself in any way, includingPublic byAct name, identifying number, cryptographic key, office or accountnumber,astheassigneeoftheauthoritativeelectroniccopy;and sHB6970 / File No.

80925-145 6368 sHB6970of File166 Substitute House Bill No.

8096970 including by name, identifying number, cryptographic key, office or accountnumber,astheassigneeoftheauthoritativeelectroniccopy;and (3) Gives the purchaser exclusive power, subject to subsection (d) of this section, to:

(f)Public IfAct aNo. purchaser has the powers specified in subparagraphs (A) and (B) of subdivision (3) of subsection (c) of this section, the powers are presumed to be exclusive.

(g)25-145 A69 purchaser has control of an166 authoritativeSubstitute electronicHouse copyBill of a sHB6970 / File No.

8096970 64(f) sHB6970If Filea No.purchaser has the powers specified in subparagraphs (A) and (B) of subdivision (3) of subsection (c) of this section, the powers are presumed to be exclusive.

809(g) A purchaser has control of an authoritative electronic copy of a record evidencing chattel paper if another person, other than the transferor to the purchaser of an interest in the chattel paper:

and (2) The electronic money, a record attached to or logically associated with the electronic money or a system in which the electronic money is recorded enables the person readily to identify itself in any way, including by name, identifying number, cryptographic key, office or accountPublic number,Act asNo. having the powers under subdivision (1) of this subsection.

25-145 70 of 166 Substitute House Bill No.

6970 account number, as having the powers under subdivision (1) of this subsection.

(1) The electronic money, a record attached to or logically associated sHB6970with /the Fileelectronic No.money or a system in which the electronic money is recorded limits the use of the electronic money or has a protocol programmed to cause a change, including a transfer or loss of control;

809 65 sHB6970 File No.

809 with the electronic money or a system in which the electronic money is recorded limits the use of the electronic money or has a protocol programmed to cause a change, including a transfer or loss of control;

or (2)Public ObtainsAct controlNo. of the electronic money after having acknowledged that it will obtain control of the electronic money on behalf of the person.

25-145 71 of 166 Substitute House Bill No.

6970 (2) Obtains control of the electronic money after having acknowledged that it will obtain control of the electronic money on behalf of the person.

(b) A secured party has control of a controllable account or controllable payment intangible if the secured party has control of the controllable electronic record that evidences the controllable account or sHB6970controllable /payment Fileintangible. No.

809 66 sHB6970 File No.

809 controllable payment intangible.

(2) The debtor has rights in the collateral or the power to transfer rightsPublic inAct theNo. collateral to a secured party;

25-145 72 of 166 Substitute House Bill No.

6970 rights in the collateral to a secured party;

or sHB6970(D) /The Filecollateral No.is controllable accounts, controllable electronic records, controllable payment intangibles, deposit accounts, [electronic chattel paper] electronic documents, electronic money, investment property [,] or letter-of-credit rights, [or electronic documents,] and the secured party has control under section 42a-7-106, as amended by this act, 42a-9-104, as amended by this act, 42a-9-105, as amended by this act, 42a-9-106, [or]42a-9-107 or section40ofthisact, pursuant to thedebtor's security agreement;

809 67 sHB6970 File No.

809 (D) The collateral is controllable accounts, controllable electronic records, controllable payment intangibles, deposit accounts, [electronic chattel paper] electronic documents, electronic money, investment property [,] or letter-of-credit rights, [or electronic documents,] and the secured party has control under section 42a-7-106, as amended by this act, 42a-9-104, as amended by this act, 42a-9-105, as amended by this act, 42a-9-106, [or]42a-9-107 or section40ofthisact, pursuant to thedebtor's security agreement;

(b)Public [A]Act SubjectNo. to the provisions of subsection (c) of this section, a security interest does not attach under a term constituting an after-acquired property clause to:

25-145 73 of 166 Substitute House Bill No.

6970 (b) [A] Subject to the provisions of subsection (c) of this section, a security interest does not attach under a term constituting an after-acquired property clause to:

(1) To consumer goods as proceeds under subsection (a) of section 42a-9-315 or commingled goods under subsection (c) of section 42a-942a-9- 336;

(2) To a commercial tort claim as proceeds under subsection (a) of sHB6970section /42a-9-315; File No.

809 68 sHB6970 File No.

809 section 42a-9-315;

(c) Except as otherwise agreed by a debtor other than a consumer debtor or as otherwise provided in subsection (d) of this section, a secured party having possession of collateral or control of collateral under section 42a-7-106, as amended by this act, 42a-9-104, as amended byPublic thisAct act,No. 42a-9-105, as amended by this act, section 39 of this act, 42a- 9-106, [or] 42a-9-107 or section 40 of this act:

25-145 74 of 166 Substitute House Bill No.

6970 by this act, 42a-9-105, as amended by this act, section 39 of this act, 42a- 9-106, [or] 42a-9-107 or section 40 of this act:

(1) A secured party having control of a deposit account under subdivision (2) ofsubsection(a)ofof subsection(a)of section42a-9-104,as amended by this act, shall send to the bank with which the deposit account is maintained sHB6970[an /authenticated Filestatement] No.a signed record that releases the bank from any further obligation to comply with instructions originated by the secured party;

809 69 sHB6970 File No.

809 [an authenticated statement] a signed record that releases the bank from any further obligation to comply with instructions originated by the secured party;

(A)Public CommunicateAct theNo. authoritative copy of the electronic chattel paper to the debtor or its designated custodian;

25-145 75 of 166 Substitute House Bill No.

6970 (A) Communicate the authoritative copy of the electronic chattel paper to the debtor or its designated custodian;

(4) A secured party having control of investment property under sHB6970subdivision(2)ofsubsection(d)ofsection42a-8-106,asamendedbythis /act, Fileor No.subsection (b) of section 42a-9-106 shall send to the securities intermediary or commodity intermediary with which the security entitlement or commodity contract is maintained [an authenticated] a signed record that releases the securities intermediary or commodity intermediary from any further obligation to comply with entitlement orders or directions originated by the secured party;

809(5) 70A sHB6970secured Fileparty having control of a letter-of-credit right under section 42a-9-107 shall send to each person having an unfulfilled obligation to pay or deliver proceeds of the letter of credit to the secured party [an authenticated] a signed release from any further obligation to Public Act No.

80925-145 subdivision(2)ofsubsection(d)ofsection42a-8-106,asamendedbythis76 act, or subsection (b) of section166 42a-9-106Substitute shallHouse sendBill toNo. the securities intermediary or commodity intermediary with which the security entitlement or commodity contract is maintained [an authenticated] a signed record that releases the securities intermediary or commodity intermediary from any further obligation to comply with entitlement orders or directions originated by the secured party;

(5)6970 A secured party having control of a letter-of-credit right under section 42a-9-107 shall send to each person having an unfulfilled obligation to pay or deliver proceeds of the letter of credit to the secured party [an authenticated] a signed release from any further obligation to pay or deliver proceeds of the letter of credit to the secured party;

(7) A secured party having control under section 39 of this act of sHB6970electronic /money Fileshall No.transfer control of the electronic money to the debtor or a person designated by the debtor;

809 71 sHB6970 File No.

809 electronic money shall transfer control of the electronic money to the debtor or a person designated by the debtor;

Sec.Public Act No.

25-145 77 of 166 Substitute House Bill No.

6970 Sec.

(3) "Request regarding a list of collateral" means a record [authenticated] signed by a debtor requesting that the recipient approve or correct a list of what the debtor believes to be the collateral securing an obligation and reasonably identifying the transaction or relationship sHB6970that /is Filethe No.subject of the request.

809(4) 72"Request sHB6970regarding Filea statement of account" means a record [authenticated] signed by a debtor requesting that the recipient approve or correct a statement indicating what the debtor believes to be the aggregate amount of unpaid obligations secured by collateral as of a Public Act No.

80925-145 that78 isof the166 subjectSubstitute ofHouse theBill request.No.

(4)6970 "Request regarding a statement of account" means a record [authenticated] signed by a debtor requesting that the recipient approve or correct a statement indicating what the debtor believes to be the aggregate amount of unpaid obligations secured by collateral as of a specified date and reasonably identifying thetransaction or relationship that is the subject of the request.

sHB6970(e) /A Fileperson that receives a request for an accounting or a request regarding a statement of account, claims no interest in the obligations when it receives the request and claimed an interest in the obligations at Public Act No.

80925-145 7379 sHB6970of File166 Substitute House Bill No.

8096970 (e) A person that receives a request for an accounting or a request regarding a statement of account, claims no interest in the obligations when it receives the request and claimed an interest in the obligations at an earlier time shall comply with the request within fourteen days after receipt by sending to the debtor an authenticated record:

sHB6970Public /Act File No.

80925-145 7480 sHB6970of File166 Substitute House Bill No.

8096970 (A) Perfection of a security interest in the goods by filing a fixture filing;

(2) The local law of the issuer's jurisdiction as specified in subsection (d) of section 42a-8-110 governs perfection, the effect of perfection or nonperfectionPublic andAct theNo. priority of a security interest in an uncertificated security.

sHB697025-145 /81 Fileof 166 Substitute House Bill No.

8096970 75nonperfection sHB6970and Filethe No.priority of a security interest in an uncertificated security.

809 (3) The local law of the securities intermediary's jurisdiction as specified in subsection (e) of section 42a-8-110 governs perfection, the effect of perfection or nonperfection and the priority of a security interest in a security entitlement or securities account.