Massachusetts House Bill H1112

Massachusetts 2023-2024 Regular Session

• Introduced: 2/16/23
• Refer: 2/16/23
• Refer: 4/3/24

Caption

Relative to the Massachusetts Uniform Commercial Code

Impact

The amendments included in H1112 would enhance the clarity and efficiency of transactions involving electronic records by establishing standardized definitions and requirements for these transactions. The updates aim to facilitate security interests in electronic records and streamline the process for controlling electronic documents. This could positively impact businesses engaging in digital transactions, potentially fostering an environment conducive to economic growth in the state.

Summary

House Bill H1112 proposes several amendments to the Massachusetts Uniform Commercial Code (UCC), primarily aimed at updating and clarifying regulations related to electronic documents and secured transactions. One significant amendment includes redefining terms such as 'delivery' and 'electronic', and altering the definitions concerning controlled electronic copies of records related to chattel paper. This bill is part of an effort to modernize the UCC in light of the growing importance of digital transactions and electronic record-keeping in commerce.

Contention

Notably, the bill attempts to reconcile traditional practices with modern technological advancements. There may be points of contention regarding the interpretations of the updated definitions, especially among stakeholders accustomed to the previous regulations. Industry groups and legal experts may debate the implications of these changes, particularly in terms of liability, protection of interests, and operational compliance as businesses adapt to the new framework established under H1112.