North Carolina SB 117: GSC Uniform Comm. Code/Emerging Technologies.

Bill Text

GENERAL ASSEMBLY OF NORTH CAROLINA
SESSION 2025
S 1
SENATE BILL 117

Short Title: GSC Uniform Comm. Code/Emerging Technologies. (Public)
Sponsors: Senators Galey, B. Newton, and Britt (Primary Sponsors).
Referred to: Rules and Operations of the Senate
February 21, 2025
*S117-v-1*
A BILL TO BE ENTITLED 1
AN ACT TO UPDATE THE UNIFORM COMMERCIAL CODE TO GOVERN 2
TRANSACTIONS INVOLVING CERTAIN EMERGING TECHNOLOGIES, AS 3
RECOMMENDED BY THE GENERAL STATUTES COMMISSION. 4
The General Assembly of North Carolina enacts: 5
6
PART I. CONTROLLABLE ELECTRONIC RECORDS 7
SECTION 1. Chapter 25 of the General Statutes is amended by adding a new Article 8
to read: 9
"Article 12. 10
"Controllable Electronic Records. 11
"§ 25-12-101. Title. 12
This Article may be cited as Uniform Commercial Code – Controllable Electronic Records. 13
"§ 25-12-102. Definitions. 14
(a) Article 12 Definitions. – In this Article, the following definitions apply: 15
(1) Account debtor. – Defined in G.S. 25-9-102. 16
(2) Chattel paper. – Defined in G.S. 25-9-102. 17
(3) Controllable account. – Defined in G.S. 25-9-102. 18
(4) Controllable electronic record. – A record stored in an electronic medium that 19
can be subjected to control under G.S. 25-12-105. The term does not include 20
a controllable account, a controllable payment intangible, a deposit account, 21
an electronic copy of a record evidencing chattel paper, an electronic 22
document of title, electronic money, investment property, or a transferable 23
record. 24
(5) Controllable payment intangible. – Defined in G.S. 25-9-102. 25
(6) Deposit account. – Defined in G.S. 25-9-102. 26
(7) Electronic money. – Defined in G.S. 25-9-102. 27
(8) Investment property. – Defined in G.S. 25-9-102. 28
(9) Qualifying purchaser. – A purchaser of a controllable electronic record or an 29
interest in a controllable electronic record that obtains control of the 30
controllable electronic record for value, in good faith, and without notice of a 31
claim of a property right in the controllable electronic record. 32
(10) Transferable record. – Has the meaning provided for that term in either of the 33
following: 34
a. Section 201(a)(1) of the Electronic Signatures in Global and National 35
Commerce Act, 15 U.S.C. § 7021(a)(1). 36

General Assembly Of North Carolina Session 2025
Page 2 Senate Bill 117-First Edition
b. G.S. 66-326(a). 1
(11) Value. – Has the meaning provided in G.S. 25-3-303(a), as if references in 2
that subsection to an "instrument" were references to a controllable account, 3
controllable electronic record, or controllable payment intangible. 4
(b) Article 1 Definitions and Principles. – Article 1 of this Chapter contains general 5
definitions and principles of construction and interpretation applicable throughout this Article. 6
"§ 25-12-103. Relation to Article 9 and consumer laws. 7
(a) Article 9 Governs in Case of Conflict. – If there is conflict between this Article and 8
Article 9 of this Chapter, Article 9 of this Chapter governs. 9
(b) Applicable Consumer Law and Other Laws. – A transaction subject to this Article is 10
subject to any applicable rule of law that establishes a different rule for consumers, to any other 11
statute or rule of this State that regulates the rates, charges, agreements, and practices for loans, 12
credit sales, or other extensions of credit, and to any consumer-protection statute or rule of this 13
State, including Chapter 24 of the General Statutes, the Retail Installment Sales Act (Chapter 14
25A of the General Statutes), the North Carolina Consumer Finance Act (Article 15 of Chapter 15
53 of the General Statutes), and the Pawnbrokers and Currency Converters Modernization Act 16
(Part 1 of Article 45 of Chapter 66 of the General Statutes). 17
"§ 25-12-104. Rights in controllable account, controllable electronic record, and 18
controllable payment intangible. 19
(a) Applicability of Section to Controllable Account and Controllable Payment 20
Intangible. – This section applies to the acquisition and purchase of rights in a controllable 21
account or controllable payment intangible, including the rights and benefits under subsections 22
(c), (d), (e), (g), and (h) of this section of a purchaser and qualifying purchaser, in the same 23
manner this section applies to a controllable electronic record. 24
(b) Control of Controllable Account and Controllable Payment Intangible. – To 25
determine whether a purchaser of a controllable account or a controllable payment intangible is 26
a qualifying purchaser, the purchaser obtains control of the account or payment intangible if it 27
obtains control of the controllable electronic record that evidences the account or payment 28
intangible. 29
(c) Applicability of Other Law to Acquisition of Rights. – Except as provided in this 30
section, law other than this Article determines whether a person acquires a right in a controllable 31
electronic record and the right the person acquires. 32
(d) Shelter Principle and Purcha