CT HB05849

Eliminates the provision that allowed creditors of securities intermediaries to have priority over entitlement holders' claims when the creditor has control over a financial asset

Entitlement holders will now have priority over creditors of securities intermediaries when there are insufficient assets to satisfy both parties, removing the "control" exception

Retains the existing exception for clearing corporations, where creditors with security interests still maintain priority over entitlement holders

Amends Section 42a-8-511 of the Connecticut General Statutes (Uniform Commercial Code Article 8)

Effective date: October 1, 2025