Senate finance panel approves H.206 — Uniform Commercial Code update — on a roll call

The Vermont Senate Committee on Finance voted on April 17 to approve H.206, an act relating to the Uniform Commercial Code, as received from the House. Senator Chippenden moved the motion to approve the House bill without amendment; the committee then conducted a roll-call vote in which present members recorded yea votes.

Motion text recorded in the meeting: "I move H.206 as received from the House," and the committee chair called for the roll. Senators recorded on the roll as voting yes included Senator Chittenden, Senator Beck, Senator Eulich, Senator Brock, Senator Hardy, Senator Meadows and Senator Cummings. The clerk recorded the tally as affirmative votes by those members; no opposing votes were announced on the record.

Committee discussion before the vote touched on a proposed special-deposit provision intended to clarify the status of funds that banks hold in escrow or trust (for example, a realtor's trust account). Counsel described the proposal as model language that would allow parties and banks to enter an agreement protecting funds held for a third party so that, on a bankruptcy or creditor claim, the funds are treated as held for the beneficiary rather than the account holder.

Committee members and counsel urged additional review and outreach to banking stakeholders. Several speakers recommended moving cautiously with model-law language and suggested more time to consult banking counsel and other interested parties before enacting related provisions.

The motion to approve H.206 carried on the roll call as recorded. No amendments or further committee action on H.206 were recorded in the session transcript.