This bill aims to revise the Uniform Commercial Code concerning investment securities and secured transactions, specifically focusing on the rights and responsibilities of entitlement holders. Key amendments include changing references from "securities intermediary's jurisdiction" to "entitlement holder's jurisdiction" in various sections, thereby clarifying that local law jurisdiction applies to entitlement holders regarding securities and secured transactions. The bill also modifies the rules governing the priority of claims among entitlement holders and creditors, ensuring that entitlement holders' claims take precedence over those of creditors when a securities intermediary lacks sufficient interests in a financial asset.

Additionally, the bill amends several sections of the Montana Code Annotated (MCA), including 30-8-120, 30-8-503, 30-8-511, and 30-9A-305, to reflect these changes. It establishes that the local law of the entitlement holder's jurisdiction governs various aspects of security entitlements and clarifies the enforcement of property interests held by entitlement holders. The act is set to take effect on October 1, 2025, and will apply to all governing local law jurisdictions of entitlement holders for securities and secured transactions from that date forward.

Statutes affected:
LC Text: 30-8-120, 30-8-503, 30-8-511, 30-9A-305