47-9305

47-9305. Law governing perfection and priority
of security interests in investment property

A. Except as otherwise provided in subsection C of this section, the following
rules apply:

1. While a security certificate is located in a jurisdiction, the local law of that
jurisdiction governs perfection, the effect of perfection or nonperfection and the
priority of a security interest in the certificated security represented thereby.

2. The local law of the issuer's jurisdiction as specified in section 47-8110,
subsection D governs perfection, the effect of perfection or nonperfection and the
priority of a security interest in an uncertificated security.

3. The local law of the securities intermediary's jurisdiction as specified in
section 47-8110, subsection E governs perfection, the effect of perfection or
nonperfection and the priority of a security interest in a security entitlement or
securities account.

4. The local law of the commodity intermediary's jurisdiction governs perfection,
the effect of perfection or nonperfection and the priority of a security interest in a
commodity contract or commodity account.

B. The following rules determine a commodity intermediary's jurisdiction for
purposes of this article:

1. If an agreement between the commodity intermediary and commodity customer
governing the commodity account expressly provides that a particular jurisdiction is the
commodity intermediary's jurisdiction for purposes of this article, this chapter or this
title, that jurisdiction is the commodity intermediary's jurisdiction.

2. If paragraph 1 of this subsection does not apply and an agreement between the
commodity intermediary and commodity customer governing the commodity account expressly
provides that the agreement is governed by the law of a particular jurisdiction, that
jurisdiction is the commodity intermediary's jurisdiction.

3. If neither paragraph 1 nor paragraph 2 of this subsection applies and an
agreement between the commodity intermediary and commodity customer governing the
commodity account expressly provides that the commodity account is maintained at an
office in a particular jurisdiction, that jurisdiction is the commodity intermediary's
jurisdiction.

4. If none of the preceding paragraphs applies, the commodity intermediary's
jurisdiction is the jurisdiction in which the office identified in an account statement
as the office serving the commodity customer's account is located.

5. If none of the preceding paragraphs applies, the commodity intermediary's
jurisdiction is the jurisdiction in which the chief executive office of the commodity
intermediary is located.

C. The local 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 property created by a
broker or securities intermediary; and

3. Automatic perfection of a security interest in a commodity contract or commodity
account created by a commodity intermediary.