Bill > HB2611

This bill amends Tennessee law, specifically Title 47 of the Tennessee Code Annotated which deals with the Uniform Commercial Code (UCC), to change which state's laws govern certain aspects of investment security transactions. Previously, the law of the "securities intermediary's jurisdiction" (meaning the jurisdiction where the entity holding the securities for an investor is located) applied to these transactions, but this bill changes that to the "law of this state," meaning Tennessee law. It also removes specific provisions related to the securities intermediary's jurisdiction and clarifies that in situations where a securities intermediary doesn't have enough of a particular financial asset to cover both its obligations to investors and a creditor's claim, the investors' claims will take priority over the creditor's. Additionally, the bill modifies rules regarding security interests in commodity contracts and accounts, stating that the local law of the "commodity intermediary's jurisdiction" will govern perfection, the effect of perfection or nonperfection, and priority. These changes are intended to take effect on July 1, 2026.

Business and Industry

https://wapp.capitol.tn.gov/apps/Billinfo/Default?BillNumber=HB2611&ga=114