HASBSB91 TYLERT 2738
SENATE SUMMARY OF HOUSE AMENDMENTS
SB 91 2021 Regular Session Peacock
KEYWORD AND SUMMARY AS RETURNED TO THE SENATE
SECURITIES. Authorizes the transfer on death of certain securities. (1/1/22)
SUMMARY OF HOUSE AMENDMENTS TO THE SENATE BILL
1. Adds a definition of "good faith".
2. Allows the registration of a security in beneficiary form to be cancelled or
changed by any, rather than all, of the surviving owners.
DIGEST OF THE SENATE BILL AS RETURNED TO THE SENATE
SB 91 Reengrossed 2021 Regular Session Peacock
Proposed law enacts the Louisiana Uniform Transfer on Death Security Registration Act,
which provides for the transfer of certain securities to a beneficiary on the death of the owner
of such securities.
Proposed law provides definitions. Defines "security" as a share, participation, or other
interest in movable property, in a business, or in an obligation of an enterprise or other
issuer, and includes a certificated security, an uncertificated security, and a security account.
It shall not include a share, participation, or other interest in immovable property.
Proposed law provides that only individuals whose registration of a security shows sole
ownership by one individual or multiple ownership by two or more with right of
survivorship, rather than as co-owners in indivision or tenants in common, may obtain
registration in beneficiary form.
Proposed law further provides that a registration of a security in beneficiary form does not
constitute a donation inter vivos or mortis causa. A registration of a security in beneficiary
form may be canceled or changed at any time by the sole owner or any of the surviving
owners without the consent of the beneficiary.
Proposed law further provides that, on proof of death of a sole owner or the last to die of all
multiple owners, and compliance with any applicable requirements of the registering entity,
a security registered in beneficiary form may be registered in the name of the beneficiary or
beneficiaries who survived the death of all owners, but such registration in the name of the
beneficiary or beneficiaries has no effect on ownership.
Proposed law provides certain procedures. Provides that by accepting a request for
registration of a security in beneficiary form, the registering entity agrees that the
registration will be implemented on death of the deceased owner as provided in proposed
law. Further provides that such registering entity is discharged from all claims to a security
by the estate, surviving spouse, creditors, heirs, legatees, or forced heirs of a deceased owner
if it registers a transfer of the security in accordance with the proposed law and does so in
good faith reliance (a) on the registration, (b) on the proposed law, and (c) on information
provided to it by affidavit of the succession representative of the deceased owner, or by the
surviving beneficiary or by the surviving beneficiary's representatives.
Proposed law further provides that its protections do not extend to a registration or payment
made after a registering entity has received written notice from any claimant to any interest
in the security objecting to implementation of a registration in beneficiary form. No other
notice or information available to the registering entity affects its right to protection under
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the proposed law. Also provides that its protections to the registering entity of a security
does not affect the rights of succession representatives, surviving spouses, heirs, legatees,
forced heirs, or creditors in disputes between themselves and other claimants to ownership
of the security transferred or its value or proceeds.
Proposed law authorizes certain terms, conditions, and forms for registration.
Proposed law provides that it shall become effective on January 1, 2022, and shall apply
only to registrations of securities in beneficiary form made on and after that date. Also
provides that it does not preclude or govern the application of payable on death accounts and
other transfers by a bank or savings institution as authorized by Title 6 of the Louisiana
Revised Statutes of 1950.
Effective January 1, 2022.
(Adds R.S. 9:1711-1711.9)
______________________
Thomas L. Tyler
Deputy Chief of Staff
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