The New York Legislature unanimously passed Assembly Bill 9933 in late June. Once signed by the governor, this legislation will bring about a much-needed modernization of Articles 1, 7, and 9 of the New York Uniform Commercial Code, bringing New York up to date with comparable revisions enacted in other states.1
Historically, New York has been a leading state for commercial law and this status has generated substantial economic activity and employment in the state. Section 5-1401 of the General Obligations Law evidences a legislative desire to permit parties who may be located outside of the state to select New York law to govern their transactions. New York will soon join its sister states in modernizing its commercial law. When the bill is signed, New York will be the 47th state to enact Revised Articles 1 and 7 of the UCC, and the 49th state to enact the 2010 Amendments to Article 9 of the UCC.2 New York remains the only state that has not enacted Revised Articles 3 and 4 of the UCC.3 Without detailing every nuance, this article will summarize the bill and its principal changes to existing law.
