Bill would set rules for controlling and transferring digital business records

The bill would set rules for rights in certain digital records and payment rights. These provisions cover controllable electronic records and certain payment rights represented by those records. A qualifying buyer must pay value, act in good faith, gain control, and lack notice of another person’s property claim. The bill would take effect January 1, 2027.

The bill would set rules for using electronic money and digital records as loan collateral. These provisions address lenders and borrowers using electronic money, controllable records, and certain payment rights as collateral. A security interest generally requires value, the debtor’s rights in the collateral, and a signed security agreement or another listed step. Some collateral can require the lender to have control. The bill would take effect January 1, 2027.

The bill would set transition rules for earlier transactions and property claims. These rules address transactions, liens, and other property interests entered into or created before January 1, 2027. Earlier transactions and claims generally remain valid. Some security interests that do not meet the updated requirements may need further action to remain enforceable or perfected. The bill sets January 1, 2027, as its effective date. The adjustment date would be July 1, 2027, or one year after January 1, 2027, whichever is later.