Official Summary Text
The Uniform Commercial Code provides that the local law of a security intermediary's jurisdiction governs (i) acquisitions of a security entitlement from the securities intermediary, (ii) the rights and duties of the securities intermediary and entitleme
nt holder arising out of a security entitlement, (iii) whether the securities intermediary owes any duties to an adverse claimant to a security entitlement, and (iv) whether an adverse claim can be asserted against a person who acquires a security entitle
me
nt from the securities intermediary or a person who purchases a security entitlement or interest therein from an entitlement holder. A "securities intermediary" is defined as a clearing corporation or a person, including a bank or broker, that in the ord
inary course of its business maintains securities accounts for others and is acting in that capacity. This bill, instead, requires that all of the scenarios described in (i)-(iv) above be governed by the laws of this state.
Present law generally provides that 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 obli
gation to a creditor of the securities intermediary who has a security interest in that financial asset, then the claims of entitlement holders, other than the creditor, have priority over the claim of the creditor. However, there are two exceptions in p
re
sent law to this general rule. This bill eliminates those exceptions.
ON MARCH 23, 2026, THE SENATE ADOPTED AMENDMENT #2 AND PASSED SENATE BILL 2214, AS AMENDED.
AMENDMENT #2 rewrites the bill to, instead, require a utility to provide material that is required for construction of utility infrastructure for the customer's or approved contractor's use at the same price as the utility paid for the material, if such
material is available only from the utility. Present law prohibits a utility from requiring that materials or services from the construction of the utility infrastructure be provided by a specific vendor or contractor, unless necessary for the quality or
i
ntegrity of the utility's system.
Present law requires a utility in this state to provide a customer of the utility or person submitting a plan of development to the utility with the option to use an approved contractor or approved contractors of the customer's choosing for the installat
ion of such utility infrastructure. This amendment authorizes a customer or approved contractor installing utility infrastructure to install street lights. However, a utility is prohibited from requiring a customer or approved contractor from installing
s
treet lights.
Present law authorizes a utility to charge a reasonable fee for inspections of the installation and construction of the utility infrastructure in a plan of development, including any materials used in the construction. A utility may also charge a reason
able fee for reviewing plans and designs for utility infrastructure within a plan of development when a utility does not customarily prepare plans and designs for such infrastructure. This amendment prohibits these fees from exceeding a combined total of
1
0% of the proposed cost of the project.
Current Bill Text
Read the full stored bill text
HOUSE BILL 2611
By Hulsey
SENATE BILL 2214
By Walley
SB2214
012334
- 1 -
AN ACT to amend Tennessee Code Annotated, Title 47,
relative to the Uniform Commercial Code.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF TENNESSEE:
SECTION 1. Tennessee Code Annotated, Section 47-8-110(b), is amended by deleting
"local law of the securities intermediary's jurisdiction, as specified in subsection (e)," and
substituting "law of this state".
SECTION 2. Tennessee Code Annotated, Section 47-8-110, is amended by deleting
subsections (e) and (f).
SECTION 3. Tennessee Code Annotated, Section 47-8-503(a), is amended by deleting
", except as otherwise provided in § 47-8-511".
SECTION 4. Tennessee Code Annotated, Section 47-8-511, is amended by deleting the
section and substituting:
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, then the claims of
entitlement holders, other than the creditor, have priority over the claim of the creditor.
SECTION 5. Tennessee Code Annotated, Section 47-9-305(a), is amended by deleting
subdivisions (3) and (4) and substituting:
(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.
SECTION 6. This act takes effect July 1, 2026, the public welfare requiring it.