On December 5, the governor of New York signed into law an act to amend the state’s UCC, aiming to address emerging technologies and update rules for commercial transactions involving virtual currencies. The legislation updates rules regarding control of electronic documents of title, specifying that a person has control if an electronic copy or record establishes the person as the recipient. The act also clarifies that purchasers have control of electronic copies of records evidencing chattel paper when the system can identify the purchaser. The legislation introduced articles 12 and 12-A to implement these changes.

Additionally, the law adds new sections: 9-105A, which outlines provisions for control of electronic money; 9-107A, which details control of controllable electronic records, accounts, or payment intangibles by secured parties; and 9-107B, which states there is no requirement to acknowledge or confirm control.

The act further revises the law governing perfection and priority of security interests in chattel paper (Section 9-306A) and controllable accounts, controllable electronic records, and controllable payment intangibles (Section 9-306B). It also establishes new rules for perfection by possession and control of chattel paper (Section 9-314A) and clarifies priority of security interests in controllable accounts, electronic records, and payment intangibles (Section 9-326A).