Bill > HB427

This bill amends the Uniform Commercial Code (UCC), which is a set of standardized laws governing commercial transactions across the United States. Specifically, it clarifies that New Hampshire state law will govern certain transactions related to investment securities, such as stocks and bonds, by specifying the "choice of law" rules for these matters. It also modifies the rules regarding the priority of claims when a securities intermediary, a financial institution that holds securities on behalf of investors, faces financial difficulties. Under the changes, the interests of investors who hold "security entitlements" (their right to a financial asset held by the intermediary) will generally take precedence over the claims of creditors who have a "security interest" (a right to collateral to secure a debt) in those same financial assets, unless specific exceptions apply. Additionally, the bill makes a minor technical change to the definition of a "deposit account" to exclude "programmable medium of exchange," which refers to digital currencies or similar assets.

Business and Industry

https://gc.nh.gov/bill_Status/billinfo.aspx?id=609&inflect=2