Relating to: investment securities under the Uniform Commercial Code.

Senate Bill 123 amends sections of the Uniform Commercial Code (UCC) related to investment securities, affecting securities intermediaries, investors (entitlement holders), and their creditors. The bill clarifies that financial assets held by a securities intermediary for investors are generally not considered the intermediary's property and are protected from the intermediary's creditors. It also establishes that, in most situations, the claims of investors have priority over the claims of a securities intermediary's creditors for the same financial asset. Additionally, the bill modifies provisions concerning the local law that governs security entitlements.