The bill amends several sections of the Uniform Commercial Code (UCC) in South Dakota, specifically focusing on the governance of securities and security entitlements. Notably, it modifies Section 57A-8-110 to clarify that the law of the issuer's jurisdiction governs various aspects of securities, while the law of South Dakota governs matters related to securities intermediaries. The bill removes previous provisions that defined the jurisdiction of securities intermediaries based on agreements and physical locations, streamlining the legal framework for determining jurisdiction in these cases.

Additionally, the bill amends Sections 57A-8-503 and 57A-8-511 to establish clearer priorities between entitlement holders and creditors of securities intermediaries regarding financial assets. It emphasizes that entitlement holders' claims take precedence over creditors' claims when the intermediary lacks sufficient interests in a financial asset. Furthermore, Section 57A-9-305 is revised to specify that the law of South Dakota governs the perfection and priority of security interests in security entitlements and securities accounts, reinforcing the state's jurisdiction in these matters. Overall, the amendments aim to enhance clarity and consistency in the regulation of securities and related transactions within South Dakota.

Statutes affected:
Introduced, 01/28/2025: 57A-8-110, 57A-8-503, 57A-8-511, 57A-9-305
House Commerce and Energy Engrossed, 02/05/2025: 57A-8-110, 57A-8-503, 57A-8-511, 57A-9-305