NY A03307

Amends the Uniform Commercial Code to add new Article 12 governing "controllable electronic records" - digital assets stored electronically that can be subjected to control, excluding deposit accounts, electronic money, and investment property

Creates legal framework for "electronic money" (money in electronic form) and establishes rules for perfecting security interests through control, separate from tangible money which requires physical possession

Updates definitions throughout the UCC, replacing "writing" with "record" and "authenticated" with "signed" to accommodate electronic transactions, and redefines "money" to exclude certain electronic records that operated before government authorization (e.g., cryptocurrency)

Establishes choice-of-law rules for controllable electronic records, controllable accounts, and controllable payment intangibles based on the jurisdiction specified in the record or system, defaulting to the District of Columbia

Adds protections for "qualifying purchasers" who obtain control of controllable electronic records for value, in good faith, and without notice of property claims, allowing them to take free of prior property claims