Uniform Commercial Code - As introduced, changes, from the local law of the securities intermediary's jurisdiction to the law of this state, the law governing certain aspects of an investment security transaction; makes other related changes. - Amends TCA Title 47.

Summary

The bill changes the Uniform Commercial Code so that Tennessee law, rather than the local law of a securities or commodity intermediary’s jurisdiction, determines how security interests are handled. It also adds a rule that, when an intermediary lacks enough assets, the owners of the securities get priority over a creditor. The changes would affect brokers, custodians, and other financial intermediaries that operate in Tennessee.

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