2020 New York Laws
UCC - Uniform Commercial Code
Article 9 - Secured Transactions
Part 3 - Perfection and Priority
Sub Part 1 - Law Governing Perfection and Priority
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.
