KY
Kentucky Senate Bill SB155

Kentucky 2024 Regular Session

Kentucky Senate Bill SB155

Introduced
1/31/24  
Refer
1/31/24  
Refer
2/2/24  
Report Pass
2/15/24  
Engrossed
2/23/24  
Refer
2/23/24  
Refer
3/12/24  
Report Pass
3/13/24  
Enrolled
3/22/24  
Enrolled
3/22/24  

Caption

AN ACT relating to the Uniform Commercial Code.

Impact

The changes introduced by SB155 will have significant implications for businesses and individuals engaging in secured transactions. By clarifying the conditions under which security interests can be asserted and enforced, the bill aims to reduce legal ambiguities and enhance predictability in commercial dealings. This is expected to foster a more efficient market, allowing for greater access to credit and financing options. Moreover, the incorporation of provisions for electronic transactions acknowledges the digital economy's growth, ensuring the UCC remains relevant and effective.

Summary

SB155 amends the Uniform Commercial Code (UCC) in Kentucky, specifically focusing on the rules surrounding security interests and electronic transactions. This bill seeks to modernize the existing laws by providing clearer definitions and guidelines regarding the creation, enforcement, and perfection of security interests, especially in digital and electronic formats. It recognizes the evolving nature of commerce and finance, particularly the increasing role of electronic money and records in transactions, adapting the UCC to meet contemporary financial practices.

Sentiment

The overall sentiment towards SB155 appears supportive, reflecting a recognition of the necessity to update the UCC in line with modern practices. Stakeholders, including legal experts and business entities, have expressed appreciation for the bill's intent to streamline transactions and enhance security in commercial operations. However, there are also voices cautioning about the potential complexities involved in transitioning to electronic formats and ensuring all parties can adapt to these changes effectively.

Contention

While SB155 has garnered widespread support, some points of contention may arise regarding the implementation of electronic systems and the enforceability of electronic records. Concerns about access, security, and the potential for fraud in electronic transactions could lead to debates over regulatory safeguards. Additionally, questions about the clarity of definitions and their implications in practical scenarios could prompt discussions among legislators and industry experts on how to balance innovation with consumer protection.

Latest SB155 Activity

Companion Bills

No companion bills found.

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AZ HB2770

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HI SB352

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AL HB348

Relating to the Uniform Commercial Code; to add Article 12 to the Uniform Commercial Code to govern the property rights of certain intangible digital assets (controllable electronic records), including electronic rights to payment, to provide for a manner to establish the transfer and control of those assets, to provide a mechanism for evidencing certain rights of payment, and to adopt special rules with regard to the payment obligations and conditions of discharge of account debtors on controllable accounts and controllable payment intangibles; to amend Sections 7-1-201, 7-1-204, 7-1-301, 7-1-306, 7-2-102, 7-2-106, 7-2-201, 7-2-202, 7-2-203, 7-2-205, 7-2-209, 7-2A-102, 7-2A-103, 7-2A-107, 7-2A-201, 7-2A-202, 7-2A-203, 7-2A-205, 7-2A-208, 7-3-104, 7-3-105, 7-3-401, 7-3-604, 7-4A-103, 7-4A-201, 7-4A-202, 7-4A-203, 7-4A-207, 7-4A-208, 7-4A-210, 7-4A-211, 7-4A-305, 7-5-104, 7-5-116, 7-7-102, 7-7-106, 7-8-102, 7-8-103, 7-8-106, 7-8-110, 7-8-303, 7-9A-102, 7-9A-104, 7-9A-105, 7-9A-203, 7-9A-204, 7-9A-207, 7-9A-208, 7-9A-209, 7-9A-210, 7-9A-301, 7-9A-304, 7-9A-305, 7-9A-310, 7-9A-312, 7-9A-313, 7-9A-314, 7-9A-316, 7-9A-317, 7-9A-323, 7-9A-324, 7-9A-330, 7-9A-331, 7-9A-332, 7-9A-334, 7-9A-341, 7-9A-404, 7-9A-406, 7-9A-408, 7-9A-509, 7-9A-513, 7-9A-601, 7-9A-605, 7-9A-608, 7-9A-611, 7-9A-613, 7-9A-614, 7-9A-615, 7-9A-616, 7-9A-619, 7-9A-620, 7-9A-621, 7-9A-624, and 7-9A-628, Code of Alabama 1975, and to add Sections 7-9A-107A, 7-9A-107B, 7-9A-306A, 7-9A-306B, 7-9A-314A, and 7-9A-326A to the Code of Alabama 1975, to provide a substantial revision to the Uniform Commercial Code in conformity with a substantial portion of the Uniform Commercial Code Amendments (2022), to clarify the meaning of the term chattel paper and other definitions, to define and provide for hybrid transactions, and to provide extensive amendments to the Uniform Commercial Code providing for the perfection of security interests in controllable electronic records, documents of title, chattel paper, and other assets; and to add Article 12A to the Uniform Commercial Code to provide transitional provisions for the Uniform Commercial Code Amendments (2022).