Bill > HB0443

This bill amends several sections of Tennessee's Uniform Commercial Code related to investment securities and financial assets, primarily changing the governing law for certain transactions. Specifically, the bill modifies Section 47-8-110 to replace references to the "local law of the securities intermediary's jurisdiction" with "law of this state," effectively standardizing the legal framework for investment security transactions within Tennessee. The bill also removes existing subsections that previously specified jurisdictional details and adjusts provisions related to priority claims when a securities intermediary has insufficient financial assets to satisfy both entitlement holders and creditors. In such cases, the claims of entitlement holders will take precedence over the claims of creditors. Additionally, the bill makes parallel changes to commodity intermediary regulations, specifying that local law of the commodity intermediary's jurisdiction will govern perfection and priority of security interests in commodity contracts or accounts. These amendments aim to clarify and streamline legal procedures for financial transactions within the state. The bill is set to take effect on July 1, 2025.

Business and Industry

https://wapp.capitol.tn.gov/apps/Billinfo/default.aspx?BillNumber=HB0443&ga=114