In the near future I plan to introduce legislation that will restore private property rights to individuals who hold investment securities in the state of Pennsylvania.  This legislation will amend Title 13 (Commercial Code) to ensure that all those who hold such securities will be equally protected under the law should an economic downturn occur.

Revisions made to Title 13 provided for changes that turned our common understanding of property rights on its head. These changes created a new form of “property rights” for investment securities called a “security entitlement.” The result is that you do not actually own the underlying stock or bond. You only “own” certain contractual rights with your broker.

Additionally, this new legal framework surrounding securities changed many aspects of how assets are handled by financial institutions. These changes assigned priority to protected creditors if they pledge customer assets as collateral. In the case of a large-scale financial collapse, millions of individuals could find themselves at the back of the line, unable to access funds they believed they owned, while more institutionally connected creditors would be insulated.

My legislation will restore property rights to individuals and ensure that smaller investors are not used as scapegoats during a financial crisis.