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SB 508

Uniform Commercial Code - As introduced, changes, from the local law of the securities intermediary's jurisdiction to the law of this state, the law governing certain aspects of an investment security transaction; makes other related changes. - Amends TCA Title 47.

114th Regular Session (2025-2026) Introduced by Page Walley

SB 508 shifts investment securities transaction law from the securities intermediary's home state to Tennessee, potentially simplifying in-state transactions while creating multi-state compliance complexity.

Assigned to General Subcommittee of Senate Commerce and Labor Committee
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Bill Summary · SB 508

Legislative bill overview

SB 508 modifies Tennessee's Uniform Commercial Code (Title 47) to change which state's laws govern investment security transactions. Specifically, it shifts the governing law from the jurisdiction where a securities intermediary is located to Tennessee law. The bill makes related technical adjustments to align with this jurisdictional change.

Why is this important

This change affects how investment securities are legally treated in Tennessee, potentially simplifying transactions for in-state investors and securities businesses by applying consistent Tennessee law rather than requiring compliance with multiple state laws. It could influence where financial intermediaries choose to operate and may affect the costs and complexity of securities transactions involving Tennessee parties.

Potential points of contention

  • Competitive disadvantage or advantage: Other states may view this as Tennessee attempting to attract securities business; conversely, it could disadvantage Tennessee intermediaries operating in other states who must comply with multiple jurisdictions' laws
  • Investor protection standards: If Tennessee's UCC provisions differ from other states' standards, this could create inconsistent investor protections depending on where intermediaries are domiciled
  • Interstate commerce clarity: The change may create conflicts when multi-state transactions occur, requiring parties to understand which state's law applies in mixed-jurisdiction scenarios

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

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