TX HB5174

Changes the governing law for security entitlement matters from the securities intermediary's jurisdiction to the entitlement holder's jurisdiction under the Uniform Commercial Code

Removes the exception allowing creditors with security interests to access financial assets held by securities intermediaries, strengthening protections for entitlement holders against intermediary creditors

Eliminates provisions that gave creditors with control over financial assets priority over entitlement holders, and removes special priority rules for clearing corporations

Removes references to the securities intermediary's jurisdiction for determining perfection, effect of perfection, and priority of security interests in security entitlements or securities accounts

Repeals Sections 8.110(e) and (f) of the Business & Commerce Code and applies changes only to actions filed or security interests attached on or after September 1, 2025