Bill would set state law and claim priority rules for investment assets

New Hampshire law would govern the investment security matters covered by the bill’s choice-of-law rules. The text specifies New Hampshire law for certain matters and the issuer’s jurisdiction for matters listed in RSA 382-A:8-110(a). The act would take effect 60 days after passage.

Entitlement holders would have priority over an intermediary’s creditor with a security interest in the same financial asset when the intermediary lacks enough interests to meet both obligations. This covers entitlement holders and a creditor of the securities intermediary with a security interest in the same financial asset. This priority applies only when the intermediary lacks enough interests in the asset to meet both obligations. The act would take effect 60 days after passage.

The bill states which jurisdiction’s law would govern certain security interests in investment property. The rules cover certificated and uncertificated securities, commodity contracts, and commodity accounts. For uncertificated securities and commodity contracts or accounts, the issuer’s or commodity intermediary’s jurisdiction would apply even if the transaction has no connection there. The act would take effect 60 days after passage.

The bill defines a bank deposit account to include certain everyday account types and exclude specified property and accounts. It includes demand, time, savings, passbook, and similar accounts maintained with a bank. The definition excludes investment property, a programmable medium of exchange, and accounts evidenced by an instrument. The act would take effect 60 days after passage.