Assembly Bill 133 proposes significant amendments to the Uniform Commercial Code (UCC) as it pertains to investment securities in Wisconsin. The bill aims to enhance the rights of entitlement holders by repealing several existing provisions that currently govern the jurisdiction and priority of claims related to securities held in brokerage accounts. Notably, it eliminates the exception that allows a securities intermediary's creditor to have priority over entitlement holders, even when the entitlement holder has purchased securities on margin. This change ensures that entitlement holders maintain priority in claims to securities, reinforcing their rights regardless of the intermediary's financial obligations.

Additionally, the bill modifies the jurisdictional framework governing security entitlements. It repeals existing provisions that designate the law of the securities intermediary's jurisdiction as governing, instead establishing that the law of the entitlement holder's jurisdiction will apply. This shift is intended to provide greater clarity and protection for entitlement holders in their dealings with securities intermediaries. The bill also includes amendments to various sections of the statutes, including the renumbering and amendment of specific provisions related to security interests and entitlement holders, thereby streamlining the legal framework surrounding these financial instruments.

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