House lawmakers are killing a bill that would affect certain transactions allowed under the Uniform Commercial Code.
The change is part of an attempt to alter the Uniform Commercial Code, which is the same in every state.
Backers contend that brokers would be able to seize ownership of a customer’s assets in the event the broker goes insolvent.
Critics of the change say it would discourage people from doing business in the state.
They say investors are already protected for most transactions in the event a broker goes bankrupt.
The kind of transaction it would affect is similar to someone pledging money in a CD to secure a loan with a bank.
The bill died 26 to 41.
