Rhode Island 2025 Regular Session

Rhode Island Senate Bill S0374 Compare Versions

Only one version of the bill is available at this time.

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5	5	2025 -- S 0374
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7	7	LC000987
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9	9	S T A T E O F R H O D E I S L A N D
10	10	IN GENERAL ASSEMBLY
11	11	JANUARY SESSION, A.D. 2025
12	12	____________
13	13
14	14	A N A C T
15	15	RELATING TO THE UNIFORM COMMERCIAL CODE -- TRANSITIONAL PROVISIONS
16	16	FOR UNIFORM COMMERCI AL CODE AMENDMENTS ( 2022)
17	17	Introduced By: Senators McKenney, LaMountain, and Appollonio
18	18	Date Introduced: February 26, 2025
19	19	Referred To: Senate Artificial Intelligence & Emerging Tech
20	20
21	21
22	22	It is enacted by the General Assembly as follows:
23	23	SECTION 1. Sections 6A-11-201, 6A-11-301, 6A-11-302, 6A-11-303, 6A-11-304, 6A-11-1
24	24	305 and 6A-11-306 of the General Laws in Chapter 6A-11 entitled "Transitional Provisions for 2
25	25	Uniform Commercial Code Amendments (2022)" are hereby amended to read as follows: 3
26	26	6A-11-201. Saving clause. 4
27	27	Except as provided in Part 3 of this chapter, a transaction validly entered into before 5
28	28	January 1, 2024 June 10, 2024 and the rights, duties, and interests flowing from the transaction 6
29	29	remain valid thereafter and may be terminated, completed, consummated, or enforced as required 7
30	30	or permitted by law other than this title or, if applicable, this title, as though the amendatory act of 8
31	31	June 10, 2024 had not taken effect. 9
32	32	6A-11-301. Saving clause. 10
33	33	(a) Pre-effective-date transaction, lien, or interest. Except as provided in this part, 11
34	34	chapter 9 of this title as amended by the amendatory act of June 10, 2024 and chapter 12 of this 12
35	35	title apply to a transaction, lien, or other interest in property, even if the transaction, lien, or interest 13
36	36	was entered into, created, or acquired before January 1, 2024 June 10, 2024. 14
37	37	(b) Continuing validity. Except as provided in subsection (c) of this section and § 6A-11-15
38	38	302 through § 6A-11-306: 16
39	39	(1) A transaction, lien, or interest in property that was validly entered into, created, or 17
40	40	transferred before January 1, 2024 June 10, 2024 and was not governed by this title, but would be 18
41	41
42	42
43	43	LC000987 - Page 2 of 5
44	44	subject to chapter 9 of this title as amended by the amendatory act of June 10, 2024 or chapter 12 1
45	45	of this title if it had been entered into, created, or transferred on or after January 1, 2024 June 10, 2
46	46	2024, including the rights, duties, and interests flowing from the transaction, lien, or interest, 3
47	47	remains valid on and after January 1, 2024 June 10, 2024; and 4
48	48	(2) The transaction, lien, or interest may be terminated, completed, consummated, and 5
49	49	enforced as required or permitted by the amendatory act of June 10, 2024 or by the law that would 6
50	50	apply if the amendatory act of June 10, 2024 had not taken effect. 7
51	51	(c) Pre-effective-date proceeding. The amendatory act of June 10, 2024 does not affect 8
52	52	an action, case, or proceeding commenced before January 1, 2024 June 10, 2024. 9
53	53	6A-11-302. Security interest perfected before effective date. 10
54	54	(a) Continuing perfection: perfection requirements satisfied. A security interest that is 11
55	55	enforceable and perfected immediately before January 1, 2024 June 10, 2024, is a perfected security 12
56	56	interest under the amendatory act of June 10, 2024 if, on January 1, 2024 June 10, 2024, the 13
57	57	requirements for enforceability and perfection under the amendatory act of June 10, 2024 are 14
58	58	satisfied without further action. 15
59	59	(b) Continuing perfection: enforceability or perfection requirements not satisfied. If 16
60	60	a security interest is enforceable and perfected immediately before January 1, 2024 June 10, 2024, 17
61	61	but the requirements for enforceability or perfection under the amendatory act of June 10, 2024 are 18
62	62	not satisfied on January 1, 2024 June 10, 2024, the security interest: 19
63	63	(1) Is a perfected security interest until the earlier of the time perfection would have ceased 20
64	64	under the law in effect immediately before January 1, 2024 June 10, 2024 or the adjustment date; 21
65	65	(2) Remains enforceable thereafter only if the security interest satisfies the requirements 22
66	66	for enforceability under § 6A-9-203, as amended by the amendatory act of June 10, 2024, before 23
67	67	the adjustment date; and 24
68	68	(3) Remains perfected thereafter only if the requirements for perfection under the 25
69	69	amendatory act of June 10, 2024 are satisfied before the time specified in subsection (b)(1) of this 26
70	70	section. 27
71	71	6A-11-303. Security interest unperfected before effective date. 28
72	72	A security interest that is enforceable immediately before January 1, 2024 June 10, 2024, 29
73	73	but is unperfected at that time: 30
74	74	(1) Remains an enforceable security interest until the adjustment date; 31
75	75	(2) Remains enforceable thereafter if the security interest becomes enforceable under § 6A-32
76	76	9-203, as amended by the amendatory act, on January 1, 2024 June 10, 2024, or before the 33
77	77	adjustment date; and 34
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81	81	(3) Becomes perfected: 1
82	82	(i) Without further action, on January 1, 2024 June 10, 2024, if the requirements for 2
83	83	perfection under the amendatory act of June 10, 2024 are satisfied before or at that time; or 3
84	84	(ii) When the requirements for perfection are satisfied if the requirements are satisfied after 4
85	85	that time. 5
86	86	6A-11-304. Effectiveness of actions taken before effective date. 6
87	87	(a) Pre-effective-date action; attachment and perfection before adjustment date. If 7
88	88	action, other than the filing of a financing statement, is taken before January 1, 2024 June 10, 2024, 8
89	89	and the action would have resulted in perfection of the security interest had the security interest 9
90	90	become enforceable before January 1, 2024 June 10, 2024, the action is effective to perfect a 10
91	91	security interest that attaches under the amendatory act of June 10, 2024 before the adjustment date. 11
92	92	An attached security interest becomes unperfected on the adjustment date unless the security 12
93	93	interest becomes a perfected security interest under the amendatory act of June 10, 2024 before the 13
94	94	adjustment date. 14
95	95	(b) Pre-effective-date filing. The filing of a financing statement before January 1, 2024 15
96	96	June 10, 2024, is effective to perfect a security interest on January 1, 2024 June 10, 2024, to the 16
97	97	extent the filing would satisfy the requirements for perfection under the amendatory act of June 10, 17
98	98	2024. 18
99	99	(c) Pre-effective-date enforceability action. The taking of an action before January 1, 19
100	100	2024 June 10, 2024, is sufficient for the enforceability of a security interest on January 1, 2024 20
101	101	June 10, 2024, if the action would satisfy the requirements for enforceability under the amendatory 21
102	102	act of June 10, 2024. 22
103	103	6A-11-305. Priority. 23
104	104	(a) Determination of priority. Subject to subsections (b) and (c) of this section, the 24
105	105	amendatory act of June 10, 2024 determines the priority of conflicting claims to collateral. 25
106	106	(b) Established priorities. Subject to subsection (c) of this section, if the priorities of 26
107	107	claims to collateral were established before January 1, 2024 June 10, 2024, chapter 9 of this title as 27
108	108	in effect before January 1, 2024 June 10, 2024, determines priority. 28
109	109	(c) Determination of certain priorities on adjustment date. On the adjustment date, to 29
110	110	the extent the priorities determined by chapter 9 of this title as amended by the amendatory act of 30
111	111	June 10, 2024 modify the priorities established before January 1, 2024 June 10, 2024, the priorities 31
112	112	of claims to chapter 12 of this title property and electronic money established before January 1, 32
113	113	2024 June 10, 2024, cease to apply. 33
114	114	6A-11-306. Priority of claims when priority rules of chapter 9 do not apply. 34
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118	118	(a) Determination of priority. Subject to subsections (b) and (c) of this section, chapter 1
119	119	12 of this title determines the priority of conflicting claims to chapter 12 of this title property when 2
120	120	the priority rules of chapter 9 of this title as amended by the amendatory act of June 10, 2024 do 3
121	121	not apply. 4
122	122	(b) Established priorities. Subject to subsection (c) of this section, when the priority rules 5
123	123	of chapter 9 of this title as amended by the amendatory act of June 10, 2024 do not apply and the 6
124	124	priorities of claims to chapter 12 of this title property were established before January 1, 2024 June 7
125	125	10, 2024, law other than chapter 12 of this title determines priority. 8
126	126	(c) Determination of certain priorities on adjustment date. When the priority rules of 9
127	127	chapter 9 of this title as amended by the amendatory act of June 10, 2024 do not apply, to the extent 10
128	128	the priorities determined by the amendatory act of June 10, 2024 modify the priorities established 11
129	129	before January 1, 2024 June 10, 2024, the priorities of claims to chapter 12 of this title property 12
130	130	established before January 1, 2024 June 10, 2024, cease to apply on the adjustment date. 13
131	131	SECTION 2. This act shall take effect upon passage. 14
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138	138	EXPLANATION
139	139	BY THE LEGISLATIVE COUNCIL
140	140	OF
141	141	A N A C T
142	142	RELATING TO THE UNIFORM COMMERCIAL CODE -- TRANSITIONAL PROVISIONS
143	143	FOR UNIFORM COMMERCI AL CODE AMENDMENTS ( 2022)
144	144	***
145	145	This act would implement technical corrections to the transition rules for transactions 1
146	146	governed by 2024 Public Laws Chapters 65 and 66 regarding security interests in emerging 2
147	147	technologies. 3
148	148	This act would take effect upon passage. 4
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150	150	LC000987
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