Bill > HB0543

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 changes which jurisdiction's laws apply to certain aspects of securities and investment property. The bill shifts the governing law for security entitlements and securities accounts from the "securities intermediary's jurisdiction" to the "entitlement holder's jurisdiction," meaning the laws of the place where the person holding the security entitlement is located will now apply. It also clarifies that entitlement holders have priority over creditors of the securities intermediary when the intermediary doesn't have enough assets to cover both, unless the creditor has control over the financial asset. Additionally, the bill makes a technical change to Section 70A-8-503 regarding the property interest of an entitlement holder in a financial asset held by a securities intermediary, removing an exception that allowed creditors to have priority in certain situations. Finally, it updates the law governing perfection and priority of security interests in investment property to align with these changes, specifying that the entitlement holder's jurisdiction governs security entitlements and securities accounts.

https://le.utah.gov/~2026/bills/static/HB0543.html