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SB 374

AN ACT RELATING TO THE UNIFORM COMMERCIAL CODE -- TRANSITIONAL PROVISIONS FOR UNIFORM COMMERCIAL CODE AMENDMENTS

2025 Regular Session Introduced by Pete Appollonio and 2 co-sponsors

Rhode Island adopts transitional rules for Uniform Commercial Code amendments, determining how existing commercial contracts are treated under updated state commercial law.

06/10/2025 Senate read and passed
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Bill Summary · SB 374

Legislative bill overview

SB 374 establishes transitional provisions for Rhode Island's adoption of amendments to the Uniform Commercial Code (UCC), a model law governing commercial transactions. The bill creates a framework for how existing commercial contracts and agreements will be treated during the transition to the updated UCC rules.

Why is this important

The UCC governs sales of goods, secured transactions, and other commercial dealings affecting businesses throughout Rhode Island. Transitional provisions determine whether old contracts follow legacy rules or new rules, directly impacting contract enforcement, liability, and business compliance costs during the implementation period.

Potential points of contention

  • Retroactive application concerns: Whether the law should apply to contracts executed before the effective date, potentially disrupting settled business expectations
  • Compliance burden timing: Businesses may need to modify systems and procedures on a specific deadline, creating costs and operational disruption
  • Stakeholder notification: Unclear how effectively businesses and creditors will be informed of rule changes affecting existing agreements

Compiled from official sources — confirm details with the bill’s official record.

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