400.9-305. Law governing perfection and priority of security interests in investment property.
Law governing perfection and priority of security interests ininvestment property.
400.9-305. (a) Except as otherwise provided in subsection (c), thefollowing rules apply:
(1) While a security certificate is located in a jurisdiction, thelocal law of that jurisdiction governs perfection, the effect of perfectionor nonperfection, and the priority of a security interest in thecertificated security represented thereby;
(2) The local law of the issuer's jurisdiction as specified insection 400.8-110(d) governs perfection, the effect of perfection ornonperfection, and the priority of a security interest in an uncertificatedsecurity;
(3) The local law of the securities intermediary's jurisdiction asspecified in section 400.8-110(e) governs perfection, the effect ofperfection or nonperfection, and the priority of a security interest in asecurity entitlement or securities account;
(4) The local law of the commodity intermediary's jurisdictiongoverns perfection, the effect of perfection or nonperfection, and thepriority of a security interest in a commodity contract or commodityaccount.
(b) The following rules determine a commodity intermediary'sjurisdiction for purposes of this part:
(1) If an agreement between the commodity intermediary and commoditycustomer governing the commodity account expressly provides that aparticular jurisdiction is the commodity intermediary's jurisdiction forpurposes of this part, this article, or this chapter, that jurisdiction isthe commodity intermediary's jurisdiction;
(2) If paragraph (1) does not apply and an agreement between thecommodity intermediary and commodity customer governing the commodityaccount expressly provides that the agreement is governed by the law of aparticular jurisdiction, that jurisdiction is the commodity intermediary'sjurisdiction;
(3) If neither paragraph (1) nor paragraph (2) applies and anagreement between the commodity intermediary and commodity customergoverning the commodity account expressly provides that the commodityaccount is maintained at an office in a particular jurisdiction, thatjurisdiction is the commodity intermediary's jurisdiction;
(4) If none of the preceding paragraphs applies, the commodityintermediary's jurisdiction is the jurisdiction in which the officeidentified in an account statement as the office serving the commoditycustomer's account is located;
(5) If none of the preceding paragraphs applies, the commodityintermediary's jurisdiction is the jurisdiction in which the chiefexecutive office of the commodity intermediary is located.
(c) The local law of the jurisdiction in which the debtor is locatedgoverns:
(1) Perfection of a security interest in investment property byfiling;
(2) Automatic perfection of a security interest in investmentproperty created by a broker or securities intermediary; and
(3) Automatic perfection of a security interest in a commoditycontract or commodity account created by a commodity intermediary.
(L. 1963 p. 503 § 9-305, A.L. 1988 S.B. 583, A.L. 1992 S.B. 448, A.L. 1997 S.B. 6, A.L. 2001 S.B. 288)Effective 7-01-01