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Bill

LC 293

Generally revise uniform commercial code related to entitlement holder local law

2025 Regular Session

Montana bill revising commercial code rules for securities and investment account holders died before introduction, making final impacts unknown.

(LC) Draft Died in Process
#financialinstitutions(seealso:credittransactions)
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Bill Summary · LC 293

Legislative bill overview

LC 293 would revise Montana's Uniform Commercial Code provisions governing "entitlement holders"—typically parties with rights to securities, commodities, or similar financial instruments held through intermediaries. The bill died in the legislative process before receiving a full hearing or being formally introduced.

Why is this important

Changes to UCC entitlement holder rules affect how financial institutions, brokers, and investors can exercise rights over securities and investments held in accounts. These technical revisions can impact dispute resolution, creditor claims, and the enforceability of financial transactions across Montana's commercial sector.

Potential points of contention

  • Scope of intermediary liability: Clarifying what responsibilities financial intermediaries bear for protecting entitlement holders' rights could shift costs to institutions or limit consumer protections
  • Creditor access to accounts: Modifications to how creditors can reach funds held through intermediaries may favor either debtors or creditors depending on specific language
  • Alignment with federal law: Montana's UCC changes must coordinate with federal securities regulations and other states' commercial codes to avoid conflicts in multi-state transactions

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

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