9-305 - Law Governing Perfection and Priority of Security Interests in Investment Property.

Section 9--305. Law Governing  Perfection  and  Priority  of  Security Interests in Investment Property. (a) Governing law: general rules.  Except  as  otherwise  provided  in  subsections (c) and (d), 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  8--110(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  8--110(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) Commodity intermediary's jurisdiction. The  following  rules  determine a commodity intermediary's jurisdiction for purposes  of  this  part: (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  part,  this article,  or this chapter, that jurisdiction is the commodity intermediary's jurisdiction. (2) If paragraph (1) 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)  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 apply, 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  apply,  the  commodity intermediary's  jurisdiction is the jurisdiction in which the chief executive  office  of  the  commodity  intermediary  is located. (c) When  perfection  governed  by  law  of  jurisdiction where debtor  located. 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. (d) Cooperative interests. Subsections (a) through (c) do not apply to  cooperative interests.