Bill > HB1248

This bill amends provisions of the Uniform Commercial Code (UCC), which is a set of laws governing commercial transactions in the United States. Specifically, it modifies rules related to the jurisdiction whose laws apply to various aspects of securities and security entitlements, which are rights to financial assets held by an intermediary. The bill clarifies that for certain matters concerning security entitlements and security interests in security entitlements or securities accounts, the law of "this state" (South Dakota) will govern, replacing the previous, more complex determination based on the "securities intermediary's jurisdiction." It also makes changes to the priority rules between entitlement holders and creditors of a securities intermediary, generally giving entitlement holders priority unless the creditor has control over the financial asset. Additionally, the bill adjusts rules for determining the jurisdiction of a commodity intermediary, which is an entity that holds commodity contracts or accounts for customers.

Justice

https://sdlegislature.gov/#/Session/Bill/27103