Senate Bill 2214 amends various sections of the Tennessee Code Annotated related to the Uniform Commercial Code. Notably, it modifies Section 47-8-110(b) by replacing the phrase "local law of the securities intermediary's jurisdiction, as specified in subsection (e)" with "law of this state." Additionally, subsections (e) and (f) of Section 47-8-110 are entirely removed. The bill also revises Section 47-8-503(a) by eliminating the phrase ", except as otherwise provided in 47-8-511."

Furthermore, Section 47-8-511 is replaced with new language that establishes the priority of entitlement holders' claims over those of creditors when a securities intermediary lacks sufficient interests in a financial asset. Lastly, Section 47-9-305(a) is amended by deleting subdivisions (3) and (4) and substituting a new provision that states the local law of the commodity intermediary's jurisdiction governs the perfection and priority of security interests in commodity contracts or accounts. The act is set to take effect on July 1, 2026.

Statutes affected:
Introduced: 47-8-110(b), 47-8-110, 47-8-503(a), 47-8-503, 47-8-511, 47-9-305(a), 47-9-305