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Bill > HB1276
PA HB1276
PA HB1276In short title and general matters, further providing for applicability and choice of law; in security entitlements, further providing for property interest of entitlement holder in financial asset held by securities intermediary and for priority among security interests and entitlement holders; and, in perfection and priority, further providing for law governing perfection and priority of security interests in investment property.
summary
Introduced
04/21/2025
04/21/2025
In Committee
04/21/2025
04/21/2025
Crossed Over
Passed
Dead
Introduced Session
2025-2026 Regular Session
Bill Summary
Amending Title 13 (Commercial Code) of the Pennsylvania Consolidated Statutes, in short title and general matters, further providing for applicability and choice of law; in security entitlements, further providing for property interest of entitlement holder in financial asset held by securities intermediary and for priority among security interests and entitlement holders; and, in perfection and priority, further providing for law governing perfection and priority of security interests in investment property.
AI Summary
This bill amends the Pennsylvania Consolidated Statutes to modify rules related to securities law, specifically addressing how jurisdictions are determined for securities transactions and the priority of claims in financial asset disputes. The bill eliminates the previous complex multi-step process for determining a securities intermediary's jurisdiction, instead simplifying the approach by defaulting to Pennsylvania law. It also modifies rules about property interests in financial assets, removing previous provisions that allowed creditors of securities intermediaries to have priority claims in certain circumstances. The bill streamlines the legal framework for how financial assets are held and prioritized, ensuring that entitlement holders (individuals or entities with rights to financial assets) generally have priority over creditors of the securities intermediary. Specifically, the changes mean that if a securities intermediary does not have sufficient financial assets to satisfy both its obligations to entitlement holders and its creditors, the entitlement holders' claims will take precedence. The bill will take effect 60 days after its passage, providing a clear, more straightforward approach to managing securities transactions and resolving potential conflicts between entitlement holders and creditors.
Committee Categories
Business and Industry
Sponsors (2)
Last Action
Referred to Commerce (on 04/21/2025)
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