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Better Utah Bill Tracker
2026 Interim Session

H.B. 474

Signed into Law

Uniform Commercial Code Modifications

HB0474S01 (Substitute)

Rep. Anthony E. Loubet
Sen. Kirk A. Cullimore
View on le.utah.gov
H.B. 474Signed into Law

Uniform Commercial Code Modifications

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What This Bill Does

This bill enacts provisions within Title 70A, Uniform Commercial Code.

Key Provisions

This bill:

  • defines terms;
  • amends the scope of Title 70A, Chapter 2, Uniform Commercial Code - Sales, and Title 70A, Chapter 2a, Uniform Commercial Code - Leases;
  • replaces certain references to "writing" with "record" in Title 70A, Uniform Commercial Code;
  • amends provisions relating to a funds transfer;
  • amends provisions relating to hybrid transactions;
  • enacts provisions relating to the control of a controllable electronic record;
  • provides for the discharge of an account debtor's obligation on a controllable account or controllable payment intangible;
  • establishes the governing law for a controllable electronic record;
  • provides where a branch of a bank is considered to be located for a choice of law provision;
  • amends provisions relating to control of an electronic document of title;
  • provides what does not qualify as a financial asset;
  • amends provisions relating to a purchaser's control of a security entitlement;
  • amends provisions relating to the control of a deposit account;
  • amends provisions relating to the control of an electronic copy of a record evidencing chattel paper;
  • provides the circumstances under which a secured party has control of a controllable electronic record;
  • provides a limitation on when a security interest does not attach;
  • amends the duties of a secured party with control of collateral;
  • enacts provisions governing perfection and priority of security interests in chattel paper, controllable accounts, controllable electronic records, and controllable payment intangibles;
  • amends provisions relating to perfection by control;
  • enacts provisions governing perfection by possession and control of chattel paper;
  • amends the contents of a notification of disposition of collateral;
  • enacts transitional provisions for the Uniform Commercial Code Amendments (2022); and
  • makes technical changes.

Plain-Language Summary

AI-generated summary. We recommend consulting the bill text for important decisions.

Utah's Uniform Commercial Code (UCC) — the set of laws governing most commercial transactions in the state — gets a significant update under this bill, which brings Utah's version in line with the 2022 national UCC amendments. The bill adds new rules for "controllable electronic records," a category that covers digital assets like certain cryptocurrencies and blockchain-based financial instruments, establishing how ownership and legal control of these assets is determined, how security interests in them are created and prioritized, and which state's law applies when disputes arise. It also modernizes existing UCC language throughout, replacing references to physical "writing" with the broader term "record" to better account for electronic documentation, and it clarifies rules around electronic documents of title, deposit accounts, and chattel paper (documents representing debt secured by personal property).