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PA HB1276
Bill
Status
4/21/2025
Primary Sponsor
Joseph D'Orsie
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AI Summary
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Amends Title 13 (Commercial Code) to replace variable "securities intermediary's jurisdiction" rules with Pennsylvania law as the governing law for securities accounts and security entitlements held by intermediaries in the Commonwealth
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Removes provisions that allowed securities intermediaries and entitlement holders to contractually designate which jurisdiction's law governs their securities accounts
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Eliminates the exception that gave creditors with "control" over financial assets priority over entitlement holders; entitlement holders now have priority over creditors in all cases when a securities intermediary lacks sufficient assets
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Removes the special rule allowing clearing corporation creditors priority over entitlement holders when the clearing corporation has insufficient financial assets
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Takes effect 60 days after enactment
Legislative Description
In short title and general matters, further providing for applicability and choice of law; in security entitlements, further providing for property interest of entitlement holder in financial asset held by securities intermediary and for priority among security interests and entitlement holders; and, in perfection and priority, further providing for law governing perfection and priority of security interests in investment property.
Last Action
Referred to Commerce
4/21/2025