2022 UCC Amendments Part I: Digital Assets
August 31, 2022 -- 12:00 PM CT
New UCC Article 12 provides rules to govern commercial transactions involving new types of digital assets, including virtual currencies, non-fungible tokens (“NFTs”), and what are functionally electronic promissory notes and electronic bills of exchange. Amendments to UCC Article 9 will clarify how digital assets can be used as collateral security in loan transactions and how security interests in digital assets can be perfected and achieve priority. The amendments address fiat electronic money, such as anticipated central bank digital currencies, and new choice-of-law law rules will clarify which state’s law applies to a given transaction.