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HB 1276

An Act amending Title 13 (Commercial Code) of the Pennsylvania Consolidated Statutes, in short title and general matters, further providing for applicability and choice of law; in security entitlements, further providing for property interest of entitlement holder in financial asset held by securities intermediary and for priority among security interests and entitlement holders; and, in perfection and priority, further providing for law governing perfection and priority of security interests in investment property.

2025-2026 Regular Session Introduced by Aaron Bernstine and 1 co-sponsor

HB 1276 updates Pennsylvania commercial law governing securities intermediaries and investment property to clarify ownership rights and priority claims among competing financial interests.

Referred to Commerce
0
WeVote Research Nonpartisan
Bill Summary · HB 1276

Legislative bill overview

HB 1276 amends Pennsylvania's Commercial Code (Title 13) to modernize rules governing securities intermediaries, financial assets, and investment property. The bill updates provisions on property interests in financial assets held by intermediaries and clarifies priority rules among competing security interests and entitlement holders.

Why is this important

These technical Commercial Code updates directly affect how financial institutions handle customer securities accounts, collateral arrangements, and investment holdings. Clearer priority rules reduce disputes over who has valid claims to assets during defaults or bankruptcies, which can significantly impact investor protections and market stability.

Potential points of contention

  • Scope of changes unclear: The bill references "further providing" for multiple provisions without detailing what substantive changes are being made, making it difficult to assess whether protections are being strengthened or weakened
  • Investor protection implications: Changes to entitlement holder property interests could affect whether individual investors retain clear ownership rights to securities held through intermediaries
  • Priority rules complexity: Modifications to security interest priority could benefit creditors and lenders at the expense of account holders, depending on implementation details

Compiled from official sources — confirm details with the bill’s official record.

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