Michigan would set rules for electronic commercial records

The bill sets out when the electronic transactions law applies to transactions covered by the Uniform Commercial Code. The provisions address electronic records and signatures in transactions, including some governed by the Uniform Commercial Code. The bill would take effect only if HB 6347 is enacted into law. The bill gives no separate effective date; it would not take effect unless HB 6347 is enacted.

The bill sets out requirements for an electronic record to count as a transferable record and for a person to show control of it. These provisions concern electronic records that could serve as certain commercial notes or documents. The record must qualify as a note or document under specified parts of the Uniform Commercial Code, and its issuer must expressly agree that it is transferable. The system must reliably identify the person in control; the bill lists features a system must have to meet that test.