Call 855-808-4530 or email [email protected] to receive your discount on a new subscription.
Virtual currencies continue to gain acceptance in commercial transactions. As a result, financial institutions are beginning to accept such currencies as collateral for financings. Could this become common for independent film productions and other entertainment industry ventures? However, Article 9 of the Uniform Commercial Code (UCC) falls short of providing adequate guidance on how to create or perfect a security interest in virtual currencies. This uncertainty, and the consequent risks to lenders, are further exacerbated by the lack of helpful case law and non-uniform state laws. Recognizing this problem, the Uniform Law Commission and the American Law Institute in 2019 organized the Uniform Commercial Code and Emerging Technologies Committee to consider changes to the UCC intended primarily to address "digital assets" (a term used but not defined by the Code drafters), such as some virtual currencies.
This article examines the scope of UCC Article 9 with a focus on virtual currencies, taking into consideration issues of classification and perfection, but also how the committee is attempting to tackle these unsettled issues by modifying existing provisions and, in some cases, adding new ones.
Broadly speaking, virtual currency is a currency available only in electronic form. Currencies can be a government-authorized medium of exchange (see the UCC definition of "money" in UCC §1-201(a) (24)), or they can exist through a decentralized system, with no central administrator controlling the currency supply. Decentralized currencies, which include Bitcoin, are not generated or supported by any central bank or other government agency; instead, transactions are recorded through ledger entries across decentralized computer networks known as blockchains. Once verified, the transaction information becomes part of a permanent and unchangeable "block." Owners of the virtual currencies are able to transfer units of these currencies through the ledger system that records ownership and transfers, serving as a financial transaction database, which creates transparency among the various parties.
ENJOY UNLIMITED ACCESS TO THE SINGLE SOURCE OF OBJECTIVE LEGAL ANALYSIS, PRACTICAL INSIGHTS, AND NEWS IN ENTERTAINMENT LAW.
Already a have an account? Sign In Now Log In Now
For enterprise-wide or corporate acess, please contact Customer Service at [email protected] or 877-256-2473
In June 2024, the First Department decided Huguenot LLC v. Megalith Capital Group Fund I, L.P., which resolved a question of liability for a group of condominium apartment buyers and in so doing, touched on a wide range of issues about how contracts can obligate purchasers of real property.
With each successive large-scale cyber attack, it is slowly becoming clear that ransomware attacks are targeting the critical infrastructure of the most powerful country on the planet. Understanding the strategy, and tactics of our opponents, as well as the strategy and the tactics we implement as a response are vital to victory.
Latham & Watkins helped the largest U.S. commercial real estate research company prevail in a breach-of-contract dispute in District of Columbia federal court.
Practical strategies to explore doing business with friends and social contacts in a way that respects relationships and maximizes opportunities.