# Tennessee SB 1859: AN ACT to amend Tennessee Code Annotated, Title 47, relative to the Uniform Commercial Code. Tennessee SB 1859, AN ACT to amend Tennessee Code Annotated, Title 47, relative to the Uniform Commercial Code., is a 114th General Assembly (2025-2026) Senate bill sponsored by no sponsor on record; status signed, last action 2026-04-24 (Effective date(s) 07/01/2026) (as of 2026-11-01). - Canonical: https://policyrisk.com/state-bill/TN-SB1859-2025-2026 - As of: 2026-11-01 - Plain-text twin of the page above; the HTML and this file carry the same facts. ## Facts - Bill: Tennessee SB 1859 - State: Tennessee - Session: 114th General Assembly (2025-2026) - Title: AN ACT to amend Tennessee Code Annotated, Title 47, relative to the Uniform Commercial Code. - Status: signed - Chamber: Senate - Introduced: 2026-01-21 - Last action: 2026-04-24, Effective date(s) 07/01/2026 - Sponsors: no sponsor on record - Cosponsors: 0 - Subjects: Uniform Commercial Code - Touches household money: no - Roll calls: 2 (40 yes, 0 no in all) - Economic provisions PRIA read: 26 ## Summary No summary available. ## Bill overview: provisions PRIA read - Borrowers get clearer collateral request rights: benefit, low. For covered collateral, a signed debtor demand requires the controlling lender to take the applicable release or transfer action within 10 days. Actions include releasing bank instructions, transferring an account balance, or returning control to the debtor or a chosen person. Signed information re… - Borrowers keep limits on later collateral: benefit, low. A lender generally cannot use a later-acquired-property clause to claim consumer goods acquired more than 10 days after giving value. This limit does not cover an item added to other property and pledged as extra security. The law preserves claims to specified proceeds and goods mixed together. A l… - Clearer notices and protections for consumers: benefit, low. Notices about selling consumer goods used as collateral must explain any debt remaining after the sale. They must give a phone number to learn the amount needed to get the goods back. They must also give a phone number or mailing address for more information. The law supplies a notice form that is… - Businesses can use electronic credit documents: benefit, low. Letters of credit and related confirmations, notices, transfers, changes, and cancellations can use any signed record. Parties can choose governing law and a dispute forum in a record signed by the affected parties. Those choices can also appear in the relevant letter of credit or other undertaking… - Debtors get release and collateral safeguards: benefit, low. After a debtor's signed demand, a lender must send a signed release within 10 days to a payer previously notified of an assignment. The release ends that payer's further obligation to the lender. Lenders holding or controlling covered collateral have the law's specified rights and duties. For cover… - Digital debtors get clearer payment rules: benefit, low. A payer can clear a controllable account or controllable payment obligation by paying whoever controls the electronic record proving it. Payment to a former controller can also clear the obligation, subject to the law's notification rule. - Lenders gain electronic collateral control tools: benefit, low. Required control can satisfy an enforceability condition for a lender's claim when the debtor's security agreement provides for it. Covered assets include controllable records and payment rights, bank accounts, electronic money and documents, investment property, and letter-of-credit rights. Record… - Lenders get clearer location-based lien rules: benefit, low. A bank's legally designated jurisdiction supplies the rules for establishing and ranking secured claims on its deposit accounts. This applies even when the transaction has no other connection to that jurisdiction. For specified tangible documents, goods, instruments, and money, the collateral's loc… - Signed records shape buyers' sales contracts: mixed, low. Goods sales of $500 or more generally need a signed record for enforcement, limited to the quantity recorded. Between merchants, a timely confirmation satisfies that requirement unless the recipient objects in a record within 10 days. Contract terms requiring signed changes or cancellation must be… - Bank customers face payment security rules: mixed, low. An unauthorized payment order can bind a customer when the bank proves it followed an agreed, commercially reasonable security procedure. The bank must also act in good faith and follow customer instructions recorded for the transaction. A signature comparison or known email, internet address, or p… - Check users face updated payment rules: mixed, low. A first check-image transmission counts as issuance when the payee agrees and the bank can collect it under federal law. Destroying the paper check during image-based processing does not, by itself, cancel the duty to pay. A person is liable on an instrument only if they or a legally binding agent… - Investors gain clearer control and ownership: mixed, low. A purchaser can control securities-account rights through someone who acknowledges holding or obtaining control for that purchaser. The holder need not give that acknowledgment; giving it creates no duty unless an agreement or other law says otherwise. The acknowledgment also need not be confirmed… - Businesses face different assignment rules: mixed, low. Specified rules about assignment restrictions and related matters no longer apply to controllable accounts or controllable payment rights. Specified assignment-related rules also do not apply to secured claims on ownership interests in general partnerships, limited partnerships, or limited liabilit… - Buyers gain protection from lender claims: mixed, low. Covered buyers can take property free of a lender's unprotected claim by giving value without knowing about the claim before protection begins. Delivery or control requirements depend on the property; the general rule for other collateral excludes electronic money. Buyers of goods also take free of… - Digital-record buyers gain stronger ownership protections: mixed, low. A qualifying buyer takes a controllable electronic record free of property claims by obtaining control for value, in good faith, and without notice. The law also bars covered lawsuits based on that purchase and a property claim in another such record. Protected holders and buyers under rules for pa… - Electronic signatures and clearer commercial notices: mixed, low. The law accepts paper or electronic signatures when a person intends to approve or adopt the record. It replaces paper-only requirements in specified sales, leases, and payment transactions. Notices count as sent through usual methods to a reasonable address, with sending costs provided. Even an im… - Existing deals stay valid during transition: mixed, low. Beginning July 1, 2026, earlier deals and related rights generally stay valid and enforceable under the law that applied to them. Earlier secured and controllable-asset transactions also fall under the law's transition rules; proceedings started before that date remain unaffected. Updated rules gov… - Goods renters get clearer lease rules: mixed, low. For leases mixing goods with services or other property, goods-lease rules apply based on which part is most important. When goods are not the main part, only rules mainly about those goods apply, alongside specified finance-lease rules. When goods are the main part, goods-lease rules cover the dea… - Lender claims follow new location rules: mixed, low. For electronic chattel paper, record terms or system rules identify which place's law governs protected claims and priority. Without those terms or rules, the debtor's location applies; filing also follows the debtor's location. For paper-only chattel paper, the official copy's location governs pos… - Lenders face new asset classification rules: mixed, low. The law's money definition covers government-authorized exchange media and monetary units created by international organizations or agreements between countries. It excludes electronic exchange records whose systems operated before government approval. Qualifying protected business series count as… - Lenders face updated collateral protection rules: mixed, low. The law sets how lenders legally protect claims to property used as collateral, subject to statutory exceptions. Deposit accounts and electronic money require control; tangible money requires possession. For chattel paper—records of secured payment obligations—possession or control requires handlin… - Lenders get transition time and deadlines: mixed, low. Beginning July 1, 2026, existing perfected liens stay perfected if they meet the updated enforceability and perfection requirements. Otherwise, perfection lasts only until the earlier old-law lapse date or July 1, 2027; updated enforceability requirements must also be met before July 1, 2027. Exist… - Lenders with digital control rank first: mixed, low. Controlling an electronic record generally requires access to substantially all its benefits, power to block others, and power to transfer control. The holder must be identifiable, and the law explains how shared or delegated powers count. A lender controls related controllable accounts or payment… - New rules for controlling and receiving money: mixed, low. Electronic-money control requires access to substantially all its benefits, exclusive powers to block others and transfer control, and an identifiable holder. The law explains when programmed limits, shared powers, or another person's acknowledgment still allow control. A lender can control a depos… - Payment-record buyers can outrank lenders: mixed, low. Buyers of chattel paper—records of secured payment obligations—can rank ahead of certain lender claims. They must give new value, possess every authoritative paper copy, and control every authoritative electronic copy. They must also act in good faith and in the ordinary course of business. For cla… - Traders can transfer electronic title documents: mixed, low. Delivering an electronic title document means voluntarily transferring control; delivering listed paper documents means voluntarily transferring possession. Electronic control depends on identifying and maintaining the authoritative copy and limiting changes or transfers. The law recognizes holders… ## Sponsors and cosponsors - (none) ## Roll call votes | Date | Chamber | Motion | Result | Yes | No | Other | | --- | --- | --- | --- | --- | --- | --- | | 2026-03-02 | Senate | FLOOR VOTE: Motion to Adopt 3/2/2026 | pass | 32 | 0 | | | 2026-02-24 | Senate | SENATE COMMERCE AND LABOR COMMITTEE | pass | 8 | 0 | | ## Actions (18) - 2026-04-24: Effective date(s) 07/01/2026 - 2026-04-24: Pub. Ch. 704 - 2026-04-13: Signed by Governor. (Senate) - 2026-04-02: Transmitted to Governor for action. (Senate) - 2026-04-01: Signed by H. Speaker (House) - 2026-03-26: Signed by Senate Speaker (Senate) - 2026-03-25: Enrolled and ready for signatures (Senate) - 2026-03-23: Passed H., Ayes 82, Nays 0, PNV 2 (House) - 2026-03-23: Subst. for comp. HB. (House) - 2026-03-05: Rcvd. from S., held on H. desk. (House) - 2026-03-02: Engrossed; ready for transmission to House (Senate) - 2026-03-02: Passed Senate, Ayes 32, Nays 0 (Senate) - 2026-02-27: Placed on Senate Consent Calendar 2 for 3/2/2026 (Senate) - 2026-02-24: Recommended for passage, refer to Senate Calendar Committee (Senate) - 2026-02-17: Placed on Senate Commerce and Labor Committee calendar for 2/24/2026 (Senate) - 2026-02-02: Passed on Second Consideration, refer to Senate Commerce and Labor Committee (Senate) - 2026-01-22: Introduced, Passed on First Consideration (Senate) - 2026-01-21: Filed for introduction (Senate) ## Bill text - Enrolled / Public Chapter: [PDF](https://publications.tnsosfiles.com/acts/114/pub/pc0704.pdf) - Fiscal Note: [PDF](https://capitol.tn.gov/Bills/114/Fiscal/HB1800.pdf) - Introduced: [PDF](https://capitol.tn.gov/Bills/114/Bill/SB1859.pdf) ## Related bills - SB 1915: AN ACT to amend Tennessee Code Annotated, Title 4, Chapter 1 and Title 4, Chapter 58, relative to public benefits. (signed) - SB 1900: AN ACT to amend Tennessee Code Annotated, Title 39 and Title 40, relative to first responders. (signed) - SB 1766: AN ACT to amend Tennessee Code Annotated, Title 7; Title 9; Title 12; Title 13; Title 66; Title 67 and Title 68, relative to infrastructure development distric… (signed) - SB 1771: AN ACT to amend Tennessee Code Annotated, Title 5; Title 6; Title 7 and Title 13, relative to zoning outside of municipal boundaries. (signed) - SB 1668: AN ACT to amend Tennessee Code Annotated, Title 6 and Title 7, relative to penalties for violations of ordinances. (signed) - SB 1667: AN ACT to amend Tennessee Code Annotated, Title 29; Title 55 and Title 56, relative to motor vehicle financial responsibility. (signed) ## Sources - [Enrolled / Public Chapter (PDF)](https://publications.tnsosfiles.com/acts/114/pub/pc0704.pdf) - [Fiscal Note (PDF)](https://capitol.tn.gov/Bills/114/Fiscal/HB1800.pdf) - [Introduced (PDF)](https://capitol.tn.gov/Bills/114/Bill/SB1859.pdf) ## Related - [SB 1915: AN ACT to amend Tennessee Code Annotated, Title 4, Chapter 1 and Title 4, Chapt…](https://policyrisk.com/state-bill/TN-SB1915-2025-2026) - [SB 1900: AN ACT to amend Tennessee Code Annotated, Title 39 and Title 40, relative to fi…](https://policyrisk.com/state-bill/TN-SB1900-2025-2026) - [SB 1766: AN ACT to amend Tennessee Code Annotated, Title 7; Title 9; Title 12; Title 13;…](https://policyrisk.com/state-bill/TN-SB1766-2025-2026) - [SB 1771: AN ACT to amend Tennessee Code Annotated, Title 5; Title 6; Title 7 and Title 1…](https://policyrisk.com/state-bill/TN-SB1771-2025-2026) - [SB 1668: AN ACT to amend Tennessee Code Annotated, Title 6 and Title 7, relative to pena…](https://policyrisk.com/state-bill/TN-SB1668-2025-2026) - [SB 1667: AN ACT to amend Tennessee Code Annotated, Title 29; Title 55 and Title 56, rela…](https://policyrisk.com/state-bill/TN-SB1667-2025-2026) - [Tennessee bills](https://policyrisk.com/states/tennessee/bills) - [Tennessee state hub](https://policyrisk.com/states/tennessee) - [All state legislation](https://policyrisk.com/state-bills) Source: PRIA, https://policyrisk.com/state-bill/TN-SB1859-2025-2026 (as of 2026-11-01).