# Vermont H.206: An act relating to the Uniform Commercial Code Vermont H.206, An act relating to the Uniform Commercial Code, is a 2025-2026 Session House bill sponsored by Michael J Marcotte (Republican); status signed, last action 2025-05-14 (House message: Governor approved bill on May 13, 2025); PRIA reads it as touching household money (as of 2026-11-01). - Canonical: https://policyrisk.com/state-bill/VT-H206-2026 - As of: 2026-11-01 - Plain-text twin of the page above; the HTML and this file carry the same facts. ## Facts - Bill: Vermont H.206 - State: Vermont - Session: 2025-2026 Session - Title: An act relating to the Uniform Commercial Code - Status: signed - Chamber: House - Introduced: 2025-02-12 - Last action: 2025-05-14, House message: Governor approved bill on May 13, 2025 - Sponsor: Michael J Marcotte (Republican) - Cosponsors: 2 - Touches household money: yes - Economic provisions PRIA read: 29 ## Summary No summary available. ## Bill overview: provisions PRIA read - Borrowers keep notice and liability protections: benefit, low. Debtors and secondary obligors can waive notice of a collateral sale only through an agreement signed after default. Specified secured-transaction requests, claims, and notices also require signatures. For non-consumer goods, the notice form explains that disposal can include a lease or license and… - Consumers get clearer collateral sale explanations: benefit, low. Before selling consumer goods used as collateral, lenders must give sale details and explain how to reinstate or redeem them. Notices must include contact information, a phone number for requesting an amount-owed explanation, and any stated fee for that explanation. Electronic records can provide t… - Debtors get ten-day collateral release deadlines: benefit, low. The law sets a 10-day deadline for required collateral releases or transfers after a debtor's signed demand. Covered transfers include electronic goods-payment records, title documents, money, and controllable records, to the debtor or their chosen recipient. Buyers of controllable accounts or paym… - Businesses can use signed credit records: benefit, low. Letters of credit and related changes, transfers, and cancellations can use signed records without the former extra authentication steps. Parties can choose governing law in a record signed by affected parties or in the relevant credit undertaking. Bank branches count as separate legal entities for… - Buyers gain protection from competing claims: benefit, low. Buyers can take specified assets free of unperfected lender claims by giving value without knowledge of the claim. Digital-record buyers must obtain control; chattel-paper buyers must receive authoritative paper copies and control electronic copies when those copies support control. Electronic titl… - Digital asset lenders gain control priority: benefit, low. Beginning July 1, 2025, Vermont recognizes control-based rights for controllable electronic records and linked payment rights. Control generally requires substantially all record benefits, exclusive powers to block others and transfer control, and an identifiable controller. Shared powers count onl… - Digital record buyers gain claim protections: benefit, low. Buyers generally receive the rights their seller had or could transfer, limited to the interest purchased. A qualifying buyer takes a controllable digital record free of competing property claims. Qualification requires control, value given, good faith, and no notice of the claim. These protections… - Electronic signatures and clearer contract standards: benefit, low. Electronic symbols, sounds, or processes count as signatures when the signer intends to approve the linked record. Notices count as sent through usual channels to a reasonable address, or when received within the proper delivery time. Courts decide whether contract terms stand out by reviewing all… - Protected business series gain legal recognition: benefit, low. A protected business series counts as a person under Vermont's commercial code when another law establishes it. That law must limit, or conditionally limit, creditors' access to specified entity or protected-series assets. This recognizes qualifying series in commercial transactions; it does not it… - Existing collateral claims face transition deadlines: mixed, medium. Beginning July 1, 2025, updated collateral rules generally cover existing transactions, with savings rules for earlier valid deals and proceedings. Previously perfected claims stay protected without further action when they meet the new requirements on that date. Otherwise, temporary protection gen… - Bank customers get updated transfer rules: mixed, low. Banks and customers can expressly agree in a record to limit bank recovery for certain unauthorized but legally effective transfers. Extra damages for late, improper, or failed transfers require the bank's express agreement in a record. Rejections, cancellations, and changes can be communicated ora… - Bank transfer safeguards and customer liability: mixed, low. Bank payment orders can be oral or recorded and must direct a fixed or determinable amount to a beneficiary. Banks and customers can agree to checks using codes, biometrics, encryption, or callbacks. A signature comparison or known email address, internet address, or phone number alone is not a qua… - Businesses gain clearer electronic document control: mixed, low. Systems can establish control of electronic title documents by identifying authoritative copies and the people holding them. Holders must have the required powers to protect holder designations and transfer control, with shared-control arrangements recognized. Similar rules cover electronic records… - Digital asset rules limit legal choices: mixed, low. Money includes government-authorized exchange media and specified intergovernmental units of account. It excludes electronic exchange records whose transfer system operated before government authorization or adoption. Article 12 sets the governing law for controllable records, using record or syste… - Digital records determine governing legal rules: mixed, low. A controllable digital record's jurisdiction generally supplies the law for record rights and linked payment duties. Express terms in the record, an associated record, or system rules identify that jurisdiction, followed by stated governing-law terms. The District of Columbia is the default when th… - Electronic checks keep payment duties intact: mixed, low. A drawer can issue a check by first sending its image and related information when the payee agrees. The transmission must let the receiving bank collect it as an electronic check under federal law. Destroying the paper check during image processing does not, by itself, end the duty to pay. Payment… - Electronic money recipients gain claim protections: mixed, low. Electronic money has new control standards for holders, recipients, and lenders. Control requires substantially all benefits, exclusive powers to block others and transfer control, and an identifiable controller. Joint powers are not exclusive when the other person can act independently or transfer… - Farm financing gains priority with notice: mixed, low. Qualifying crop-production lenders gain priority over competing claims on the same crops and generally their identifiable proceeds. The lender must file when it first provides new value to enable crop production. When a competing lender filed first, notice must arrive through the required process 1… - Financial transactions follow assigned jurisdiction rules: mixed, low. Covered securities matters follow the issuer's or intermediary's jurisdiction, even without a connection to that place. Deposit-account lender protection and priority follow the bank's jurisdiction; specified investment-property rules also apply without local ties. Electronic records of goods-secur… - Investors gain another securities control route: mixed, low. A purchaser can control rights held through a securities intermediary when another person acknowledges holding control for that purchaser. That person cannot be the seller transferring the interest. No one must acknowledge control, and acknowledgment alone generally creates no duties unless an agre… - Lenders and buyers must hold official copies: mixed, low. For chattel paper—records of secured payments or goods leases—lenders can protect claims by holding every authoritative paper copy and controlling every authoritative electronic copy. That protection begins only after both requirements are met and lasts only while they remain met. Purchasers gain p… - Lenders gain digital collateral filing options: mixed, low. Lenders can protect claims on controllable accounts, electronic records, and payment rights through filing or control. Control also protects claims on deposit accounts, electronic title documents, investment property, and letter-of-credit rights. Electronic money requires control; tangible money re… - Lenders gain routes to enforce collateral: mixed, low. An enforceable collateral claim requires value given and debtor rights in the property or power to transfer those rights. A debtor-signed agreement describing collateral, or the law's applicable control or possession route, must also support the claim. Limits on later-acquired consumer goods and co… - Secured lenders use agents and signatures: mixed, low. A lender can control a deposit account through someone other than the debtor who acknowledges holding control for the lender. A bank agreement to follow lender instructions without further debtor consent requires signatures from the debtor, lender, and bank. Lenders must also sign accountings and p… - Transfer notices change who debtors pay: mixed, low. Special rules replace specified assignment-payment rules for controllable accounts and payment rights. A signed transfer notice must identify the debt and new controller, state the control transfer, and give a commercially reasonable payment method. The debtor and prior controller must first agree… - New record rules for goods leases: mixed, low. Electronic records can meet goods-lease requirements for contracts, final agreements, firm offers, and signed limits on changes. A required contract record must be signed by the party being held to it or that party's authorized agent. It must show a lease and describe the goods and lease term; enfo… - New record rules for goods sales: mixed, low. Electronic records can meet goods-sale contract requirements, including final agreements and signed limits on changes. For sales of $500 or more, a signed record must show a contract; enforcement cannot exceed its stated quantity. A merchant confirmation can bind a merchant who knows its contents a… - Receivable transfers ease, ownership limits remain: mixed, low. Some legal restrictions cannot block transfers of accounts or chattel paper, or their use as collateral. This includes specified consent requirements and rules that treat the transfer as a default. Exceptions remain for health care insurance receivables and other listed transactions. These override… - Signed waivers can end contract claims: mixed, low. Parties can use a signed record to settle or give up all or part of an alleged contract-breach claim. No payment or other exchange is required. For a lease default or warranty breach, the party giving up the claim must deliver the signed waiver. ## Sponsors and cosponsors - Sponsor: Michael J Marcotte (Republican), House - Cosponsor: Edye Graning (Democratic), House - Cosponsor: Kirk White (Democratic), House ## Actions (29) - 2025-05-14: House message: Governor approved bill on May 13, 2025 (House) - 2025-05-13: Signed by Governor on May 13, 2025 (House) - 2025-05-07: Delivered to Governor on May 7, 2025 (House) - 2025-04-30: House message: House concurred in Senate proposal of amendment (House) - 2025-04-29: Senate proposal of amendment concurred in (House) - 2025-04-29: Action Calendar: Unfinished Business (House) - 2025-04-28: Action Calendar: Senate Proposal of Amendment (House) - 2025-04-25: Notice Calendar: Senate Proposal of Amendment (House) - 2025-04-24: Senate Message: Passed in concurrence with proposal of amendment (Senate) - 2025-04-23: Read 3rd time & passed in concurrence with proposal of amendment (Senate) - 2025-04-23: Pending third reading, Senator Cummings, Beck, Brock, Chittenden, Gulick, Hardy, and Mattos proposal of amendment, agreed to (Senate) - 2025-04-23: Proposal of amendment to be offered by Senator(s) Cummings, Beck, Brock, Chittenden, Gulick, Hardy, and Mattos (Senate) - 2025-04-23: New Business/Third Reading (Senate) - 2025-04-22: Reported favorably by Senator Cummings for Committee on Finance, read 2nd time and 3rd reading ordered (Senate) - 2025-04-22: Favorable report by Committee on Finance (Senate) - 2025-04-22: Second Reading (Senate) - 2025-04-18: Second Reading (Senate) - 2025-04-18: Favorable report by Committee on Finance (Senate) - 2025-04-18: Entered on Notice Calendar (Senate) - 2025-03-19: Read 1st time & referred to Committee on Finance (Senate) - 2025-03-14: Read third time and passed (House) - 2025-03-14: Action Calendar: Third Reading (House) - 2025-03-13: Third Reading ordered (House) - 2025-03-13: Report of Committee on Commerce and Economic Development agreed to (House) - 2025-03-13: Rep. Olson of Starksboro reported for the Committee on Commerce and Economic Development (House) - 2025-03-13: Read second time (House) - 2025-03-13: Action Calendar: Favorable with Amendment (House) - 2025-03-12: Notice Calendar: Favorable with Amendment (House) - 2025-02-12: Read first time and referred to the Committee on Commerce and Economic Development (House) ## Bill text - As Enacted (ACT 17)Opens in a new window, 2025-05-20: [PDF](https://legislature.vermont.gov/Documents/2026/Docs/ACTS/ACT017/ACT017%20As%20Enacted.pdf) - As Passed by Both Chambers, 2025-05-13: [PDF](https://legislature.vermont.gov/Documents/2026/Docs/BILLS/H-0206/H-0206 As Passed by Both House and Senate Official.pdf) - As Passed by Both Chambers (Unofficial), 2025-05-13: [PDF](https://legislature.vermont.gov/Documents/2026/Docs/BILLS/H-0206/H-0206 As Passed by Both House and Senate Unofficial.pdf) - Senate Proposal of Amendment, 2025-04-25: [PDF](https://legislature.vermont.gov/Documents/2026/Docs/BILLS/H-0206/H-0206 Senate proposal of amendment Official.pdf) - Senate Proposal of Amendment (Unofficial), 2025-04-25: [PDF](https://legislature.vermont.gov/Documents/2026/Docs/BILLS/H-0206/H-0206 Senate Proposal of Amendment Unofficial.pdf) - As Passed by the House, 2025-03-18: [PDF](https://legislature.vermont.gov/Documents/2026/Docs/BILLS/H-0206/H-0206 As passed by the House Official.pdf) - As Passed by the House (Unofficial), 2025-03-18: [PDF](https://legislature.vermont.gov/Documents/2026/Docs/BILLS/H-0206/H-0206 As Passed by the House Unofficial.pdf) - As Introduced, 2025-02-12: [PDF](https://legislature.vermont.gov/Documents/2026/Docs/BILLS/H-0206/H-0206 As Introduced.pdf) ## Related bills - H.211: An act relating to data brokers and personal information (signed) - S.313: An act relating to transforming Vermont’s career technical education system (signed) - S.328: An act relating to housing and common interest communities (signed) - S.323: An act relating to miscellaneous agricultural subjects (signed) - S.326: An act relating to miscellaneous amendments to laws relating to motor vehicles (signed) - S.327: An act relating to economic development (signed) ## Sources - [As Enacted (ACT 17)Opens in a new window (PDF)](https://legislature.vermont.gov/Documents/2026/Docs/ACTS/ACT017/ACT017%20As%20Enacted.pdf) - [As Passed by Both Chambers (PDF)](https://legislature.vermont.gov/Documents/2026/Docs/BILLS/H-0206/H-0206 As Passed by Both House and Senate Official.pdf) - [As Passed by Both Chambers (Unofficial) (PDF)](https://legislature.vermont.gov/Documents/2026/Docs/BILLS/H-0206/H-0206 As Passed by Both House and Senate Unofficial.pdf) - [Senate Proposal of Amendment (PDF)](https://legislature.vermont.gov/Documents/2026/Docs/BILLS/H-0206/H-0206 Senate proposal of amendment Official.pdf) - [Senate Proposal of Amendment (Unofficial) (PDF)](https://legislature.vermont.gov/Documents/2026/Docs/BILLS/H-0206/H-0206 Senate Proposal of Amendment Unofficial.pdf) - [As Passed by the House (PDF)](https://legislature.vermont.gov/Documents/2026/Docs/BILLS/H-0206/H-0206 As passed by the House Official.pdf) - [As Passed by the House (Unofficial) (PDF)](https://legislature.vermont.gov/Documents/2026/Docs/BILLS/H-0206/H-0206 As Passed by the House Unofficial.pdf) - [As Introduced (PDF)](https://legislature.vermont.gov/Documents/2026/Docs/BILLS/H-0206/H-0206 As Introduced.pdf) ## Related - [H.211: An act relating to data brokers and personal information](https://policyrisk.com/state-bill/VT-H211-2026) - [S.313: An act relating to transforming Vermont’s career technical education system](https://policyrisk.com/state-bill/VT-S313-2026) - [S.328: An act relating to housing and common interest communities](https://policyrisk.com/state-bill/VT-S328-2026) - [S.323: An act relating to miscellaneous agricultural subjects](https://policyrisk.com/state-bill/VT-S323-2026) - [S.326: An act relating to miscellaneous amendments to laws relating to motor vehicles](https://policyrisk.com/state-bill/VT-S326-2026) - [S.327: An act relating to economic development](https://policyrisk.com/state-bill/VT-S327-2026) - [Vermont bills](https://policyrisk.com/states/vermont/bills) - [Vermont state hub](https://policyrisk.com/states/vermont) - [All state legislation](https://policyrisk.com/state-bills) Source: PRIA, https://policyrisk.com/state-bill/VT-H206-2026 (as of 2026-11-01).