Bill > SB2214

This bill amends Tennessee's Uniform Commercial Code (UCC), which provides a set of laws governing commercial transactions, to clarify which state's laws apply to certain investment security transactions. Specifically, it changes the governing law for some aspects of these transactions from the law of the "securities intermediary's jurisdiction" (the place where the entity holding the securities is located) to the law of Tennessee itself. It also removes provisions that previously specified how to determine the securities intermediary's jurisdiction and makes changes to rules regarding the priority of claims when a securities intermediary has insufficient assets to cover all obligations, establishing that entitlement holders generally have priority over creditors. Additionally, it clarifies that the law of the "commodity intermediary's jurisdiction" governs perfection and priority of security interests in commodity contracts or accounts. These changes are intended to provide clearer legal rules for these financial transactions within Tennessee and will take effect on July 1, 2026.

Business and Industry

https://wapp.capitol.tn.gov/apps/Billinfo/Default?BillNumber=SB2214&ga=114