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355.9-304 Law governing perfection and priority of security interests in deposit
accounts.
(1)
(2)
The local law of a bank's jurisdiction governs perfection, the effect of perfection or
nonperfection, and the priority of a security interest in a deposit account maintained
with that bank.
The following rules determine a bank's jurisdiction for purposes of this part of this
article:
(a) If an agreement between the bank and its customer governing the deposit
account expressly provides that a particular jurisdiction is the bank's
jurisdiction for purposes of this part of this article, this article, or this chapter,
that jurisdiction is the bank's jurisdiction.
(b) If paragraph (a) of this subsection does not apply and an agreement between
the bank and its customer governing the deposit account expressly provides
that the agreement is governed by the law of a particular jurisdiction, that
jurisdiction is the bank's jurisdiction.
(c) If neither paragraph (a) nor (b) of this subsection applies and an agreement
between the bank and its customer governing the deposit account expressly
provides that the deposit account is maintained at an office in a particular
jurisdiction, that jurisdiction is the bank's jurisdiction.
(d) If none of the preceding paragraphs applies, the bank's jurisdiction is the
jurisdiction in which the office identified in an account statement as the office
serving the customer's account is located.
(e) If none of the preceding paragraphs applies, the bank's jurisdiction is the
jurisdiction in which the chief executive office of the bank is located.
Effective: July 12, 2006
History: Amended 2006 Ky. Acts ch. 242, sec. 58, effective July 12, 2006. -- Repealed
and reenacted 2000 Ky. Acts ch. 408, sec. 44, effective July 1, 2001. -- Amended
1996 Ky. Acts ch. 130, sec. 174, effective January 1, 1997. -- Amended 1986 Ky.
Acts ch. 118, sec. 65, effective July 1, 1987. -- Created 1958 Ky. Acts ch. 77, sec. 9304, effective July 1, 1960.
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