Assembly Bill 133 proposes significant amendments to the Uniform Commercial Code (UCC) as it pertains to investment securities in Wisconsin. The bill repeals several existing provisions related to the jurisdiction of securities intermediaries and the rights of entitlement holders, specifically eliminating the exception that allowed a securities intermediary's creditor to have priority over entitlement holders in certain circumstances. Instead, the bill establishes that the law governing security entitlements will be based on the jurisdiction of the entitlement holder, thereby enhancing the rights of individuals holding securities in brokerage accounts.

Additionally, the bill renumbers and amends existing statutes to clarify the priority of claims among security interests and entitlement holders. It asserts that if a securities intermediary lacks sufficient interests in a financial asset to meet obligations to both entitlement holders and its creditors, the claims of entitlement holders will take precedence. The bill also repeals various provisions that previously governed the jurisdictional aspects of securities intermediaries, streamlining the legal framework surrounding investment securities and reinforcing the protections for entitlement holders.

Statutes affected:
Bill Text: 408.503(1), 408.503, 409.305(1)(c), 409.305