HB 525 Summary

• Implements the 2022 Uniform Commercial Code Amendments from the Uniform Law Commission, adding two new articles (Article A on Controllable Electronic Records and Article B on Transitional Provisions) to Chapter 490, HRS

• Article A establishes rules for controllable electronic records (accounts, payment intangibles, and electronic records), including definitions, control requirements, and protections for qualifying purchasers who obtain control in good faith without notice of adverse claims

• Article B provides transitional provisions with an "adjustment date" of July 1, 2025 (or one year after enactment, whichever is later) to allow existing security interests to remain valid while transitioning to new perfection and priority rules

• Adds sections to Article 9 governing perfection and priority of security interests in chattel paper, controllable accounts, controllable electronic records, controllable payment intangibles, electronic money, and electronic documents of title

• Makes conforming changes throughout the UCC, including replacing references to "writing" with "record" and "authenticated" with "signed" to reflect electronic commerce standards