HB 427 - AS INTRODUCED
2025 SESSION
25-0602
07/08
HOUSE BILL 427
AN ACT relative to amending the uniform commercial code.
SPONSORS: Rep. Bernardy, Rock. 36
COMMITTEE: Commerce and Consumer Affairs
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ANALYSIS
This bill:
I. Specifies New Hampshire state law will govern certain UCC transactions.
II. Changes the priority of claims among security interests and entitlement holders.
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Explanation: Matter added to current law appears in bold italics.
Matter removed from current law appears [in brackets and struckthrough.]
Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.
25-0602
07/08
STATE OF NEW HAMPSHIRE
In the Year of Our Lord Two Thousand Twenty Five
AN ACT relative to amending the uniform commercial code.
Be it Enacted by the Senate and House of Representatives in General Court convened:
1 Uniform Commercial Code; Investment Securities; Applicability; Choice of Law. Amend RSA 382-A:8-110 (b) to read as follows:
(b) The [local] law of the state of New Hampshire [securities intermediary's jurisdiction, as specified in subsection (e),] governs:
2 Uniform Commercial Code; Investment Securities; Applicability; Choice of Law. RSA 382-A:8-110 (e) - (g) are repealed and reenacted to read as follows:
(e) The local law of the issuer's jurisdiction governs a matter or transaction specified in subsection (a), even if the matter or transaction does not bear any relation to the jurisdiction.
3 Uniform Commercial Code; Investment Securities; Security Entitlements; Property Interest of Entitlement Holder in Financial Asset Held by Securities Intermediary. Amend RSA 382-A:8-503 (a) to read as follows:
(a) To the extent necessary for a securities intermediary to satisfy all security entitlements with respect to a particular financial asset, all interests in that financial asset held by the securities intermediary are held by the securities intermediary for the entitlement holders, are not property of the securities intermediary, and are not subject to claims of creditors of the securities intermediary[, except as otherwise provided in Section 8-511].
4 Uniform Commercial Code; Investment Securities; Security Entitlements; Priority Among Security Interests and Entitlement Holders. RSA 382-A:8-511, (a) is repealed and reenacted to read as follows:
(a) If a securities intermediary does not have sufficient interests in a particular financial asset to satisfy both its obligations to entitlement holders who have security entitlements to that financial asset and its obligation to a creditor of the securities intermediary who has a security interest in that financial asset, the claims of entitlement holders, other than the creditor, have priority over the claim of the creditor.
5 Uniform Commercial Code; Secured Transactions; General Provisions; Definitions and Index of Definitions. Amend RSA 382-A:9-102 (a)(29) to read as follows:
(29) "Deposit account" means a demand, time, savings, passbook, or similar account maintained with a bank. The term does not include investment property, a programmable medium of exchange, or accounts evidenced by an instrument.
6 Secured Transactions; Perfection and Priority; Law Governing Perfection and Priority of Security Interests in Investment Property. RSA 382-A:9-305, (a) is repealed and reenacted to read as follows:
(a) Governing law: general rules. Except as otherwise provided in subsection (c), the following rules apply:
(1) While a security certificate is located in a jurisdiction, the local law of that jurisdiction governs perfection, the effect of perfection or nonperfection, and the priority of a security interest in the certificated security represented thereby.
(2) The local law of the issuer's jurisdiction as specified in Section 8-110(d) governs perfection, the effect of perfection or nonperfection, and the priority of a security interest in an uncertificated security.
(3) The local law of the commodity intermediary's jurisdiction governs perfection, the effect of perfection or nonperfection, and the priority of a security interest in a commodity contract or commodity account.
(4) Paragraphs (2) and (3) apply even if the transaction does not bear any relation to the jurisdiction.
7 Effective Date. This act shall take effect 60 days after its passage.
| Date | Body | Type |
|---|---|---|
| Jan. 23, 2025 | House | Hearing |
Jan. 15, 2025: Public Hearing: 01/23/2025 11:00 am LOB 302-304
Jan. 10, 2025: Introduced (in recess of) 01/09/2025 and referred to Commerce and Consumer Affairs HJ 3