Relating to a determination of the reasonable relation of certain transactions to particular jurisdictions.
Impact
The bill clarifies the criteria under which financial transactions, including large credit extensions exceeding $25 million, may be governed by the laws of a specific jurisdiction. By allowing transactions to retain their jurisdictional relation despite changes in circumstances or modifications of agreements, HB2991 aims to provide stability and predictability in business dealings, specifically for transactions involving multiple financial institutions. This change could particularly benefit large businesses operating across various jurisdictions by reducing regulatory uncertainties.
Summary
House Bill 2991 seeks to amend Chapter 271 of the Business and Commerce Code in Texas, focusing on the determination of the reasonable relation of certain transactions to specific jurisdictions. By redefining how a transaction relates to a particular jurisdiction, the bill aims to clarify the conditions under which a transaction is considered to bear a reasonable relation to a given jurisdiction. This includes factors such as the residency of the parties involved, the location of business operations, and the negotiation processes associated with the transaction.
Contention
Notably, the bill has generated discussions surrounding its implications for local and state regulatory powers. While proponents argue that the bill simplifies the legal landscape for complex transactions, critics may express concerns over the potential for diminished local jurisdictional influence on business practices, particularly as it pertains to consumer protections and financial regulations that may differ from state to state. The effective date for transactions impacted by this amendment is set for September 1, 2011, which emphasizes the urgency of adapting to these new frameworks.
Relating to amendments to the Uniform Commercial Code, including amendments concerning certain intangible assets and the perfection of security interests in those assets.
Relating to amendments to the Uniform Commercial Code, including amendments concerning certain intangible assets and the perfection of security interests in those assets.
Relating to the regulation of money services businesses; creating a criminal offense; creating administrative penalties; authorizing the imposition of a fee.