8.9A-305 - A-305. Law governing perfection and priority of security interests in investment property.
§ 8.9A-305. Law governing perfection and priority of security interests ininvestment property.
(a) Governing law; general rules. Except as otherwise provided in subsection(c), the following rules apply:
(1) While a security certificate is located in a jurisdiction, the local lawof that jurisdiction governs perfection, the effect of perfection ornonperfection, and the priority of a security interest in the certificatedsecurity represented thereby.
(2) The local law of the issuer's jurisdiction as specified in § 8.8A-110 (d)governs perfection, the effect of perfection or nonperfection, and thepriority of a security interest in an uncertificated security.
(3) The local law of the securities intermediary's jurisdiction as specifiedin § 8.8A-110 (e) governs perfection, the effect of perfection ornonperfection, and the priority of a security interest in a securityentitlement or securities account.
(4) The local law of the commodity intermediary's jurisdiction governsperfection, the effect of perfection or nonperfection, and the priority of asecurity interest in a commodity contract or commodity account.
(b) Commodity intermediary's jurisdiction. The following rules determine acommodity intermediary's jurisdiction for purposes of this part:
(1) If an agreement between the commodity intermediary and commodity customergoverning the commodity account expressly provides that a particularjurisdiction is the commodity intermediary's jurisdiction for purposes ofthis part, this title, or the Uniform Commercial Code, that jurisdiction isthe commodity intermediary's jurisdiction.
(2) If paragraph (1) does not apply and an agreement between the commodityintermediary and commodity customer governing the commodity account expresslyprovides that the agreement is governed by the law of a particularjurisdiction, that jurisdiction is the commodity intermediary's jurisdiction.
(3) If neither paragraph (1) nor paragraph (2) applies and an agreementbetween the commodity intermediary and commodity customer governing thecommodity account expressly provides that the commodity account is maintainedat an office in a particular jurisdiction, that jurisdiction is the commodityintermediary's jurisdiction.
(4) If none of the preceding paragraphs applies, the commodity intermediary'sjurisdiction is the jurisdiction in which the office identified in an accountstatement as the office serving the commodity customer's account is located.
(5) If none of the preceding paragraphs applies, the commodity intermediary'sjurisdiction is the jurisdiction in which the chief executive office of thecommodity intermediary is located.
(c) When perfection governed by law of jurisdiction where debtor located. Thelocal law of the jurisdiction in which the debtor is located governs:
(1) perfection of a security interest in investment property by filing;
(2) automatic perfection of a security interest in investment propertycreated by a broker or securities intermediary; and
(3) automatic perfection of a security interest in a commodity contract orcommodity account created by a commodity intermediary.
(Code 1950, § 55-9; 1964, c. 219, § 8.9-103; 1973, c. 509; 1984, c. 613;1996, c. 216; 1997, c. 343; 2000, c. 1007.)