Senate Bill 123 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 eliminating certain provisions that previously allowed creditors of securities intermediaries to have priority over entitlement holders in claims to securities. Specifically, it repeals sections that governed the jurisdiction of securities intermediaries and modifies the rules regarding the priority of claims, ensuring that entitlement holders maintain their rights even when securities are purchased on margin. The bill also renumbers and amends existing statutes to reflect these changes.

Additionally, the bill repeals several provisions related to the jurisdictional rules governing the acquisition of security entitlements and the rights and duties of securities intermediaries. It establishes that the law of the entitlement holder's jurisdiction will govern these matters, rather than the jurisdiction of the securities intermediary. This shift is intended to provide greater clarity and protection for entitlement holders in their dealings with securities intermediaries. The changes will take effect four months after publication and will apply to security interests perfected on that effective date.

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