The bill amends several sections of the Uniform Commercial Code (UCC) in South Dakota, specifically focusing on the governance of securities and security entitlements. Key changes include the specification that the local 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 to clarify that the law of this state applies uniformly.

Additionally, the bill modifies the priority of claims concerning financial assets held by securities intermediaries. It establishes that if a securities intermediary lacks sufficient interests in a financial asset to satisfy both entitlement holders and creditors, the claims of entitlement holders take precedence. The amendments also clarify the rules governing the perfection and priority of security interests in both certificated and uncertificated securities, ensuring that the local law of South Dakota applies consistently across these transactions.

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