UCITA

UCITA



UCITA

A key reason why states are hesitant to consider UCITA is that it is especially conducive to a race-to-the-bottom. Several factors are present in proposed legislation tend to generate a race-to-the- bottom. According to Bebchuck, a race-to-the-bottom is likely where the law creates both a collective action problem on the part of one interested group and the opportunity of state legislators to externalize costs of the legislation to citizens of another state. Both of these factors are clearly present in UCITA as it currently stands.

The NCCUSL is extremely vulnerable to capture, particularly when uniform enactment creates a rule that ...