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Legislative Update: Uniform Commercial Code

Issue November 2012 By Lee Ann Constantine

The MBA House of Delegates, at its September 20, meeting voted to support legislation updating portions of the Uniform Commercial Code.  House bill number 25, sponsored by the Uniform Law Commissioners and the American Law Institute, would amend Article 1 containing general provisions, Article 7 regarding documents of title and Article 9 regarding secured transactions.

The bill is currently before the Joint Committee on Economic Development and Emerging Technologies. Passage of this bill would promote uniformity in state commercial laws and afford greater transparency in commercial transactions.

Since the UCC was last updated more than 10 years ago, the changes contained in House Bill Number 25 would put Massachusetts in line with many other states who have already enacted these changes.