Multiple States, One Registration
Securities often involve parties in different states. For example, the issuer may be in Delaware, the transfer agent in New York, and the owner in Arizona.
This statute resolves the question by casting a wide net. A beneficiary form registration is valid if any connected state's law allows it.
A security may be registered in beneficiary form if the form is authorized by this or a similar statute of the state of organization of the issuer or registering entity, the location of the registering entity's principal office, the office of its transfer agent or its office making the registration or by this or a similar statute of the law of the state listed as the owner's address at the time of registration.
A.R.S. § 14-6303(A)For Arizona residents, your TOD registration is valid as long as Arizona or any connected state has a similar law. Most states have adopted the Uniform TOD Security Registration Act. As a result, conflicts are rare.
What Happens in States Without a Similar Law
Arizona does not void a registration just because the other state lacks this type of law. Instead, the law presumes the registration is still valid as a contract.
A registration governed by the law of a jurisdiction in which a law that is similar to this article is not in force or was not in force when a registration in beneficiary form was made is presumed to be valid and authorized as a matter of contract law.
A.R.S. § 14-6303(B)This presumption acts as a safety net. Courts treat the registration as an enforceable contract between the owner and the registering entity.
How This Connects to Community and Separate Property
For married couples, the choice of law can affect community property and separate property. TOD registrations made in one state may need to be honored in another.
The registration follows the asset, not the owner's current location. Joint tenants who move between states benefit from this broad rule. Couples who relocate to Arizona can generally rely on their existing TOD designations.