§ 26-1-12-107 — Governing local law; determination of controllable electronic record's jurisdiction; law governing rights acquired by purchaser or qualifying purchaser

(a) Except as provided in subsection (b),
the local law of an electronic record's jurisdiction governs a matter
covered by this chapter.
(b) For a controllable electronic record that evidences a controllable
account or a controllable payment intangible, the local law of the
controllable electronic record's jurisdiction governs a matter covered
by section 106 of this chapter unless an effective agreement determines
that the local law of another jurisdiction governs.
(c) The following rules determine a controllable electronic record's
jurisdiction under this section:
(1) If the controllable electronic record, or a record that is
attached to or logically associated with the controllable electronic
record and that is readily available for review, expressly provides
that a particular jurisdiction is the controllable electronic record's
jurisdiction for purposes of this chapter or IC 26-1, that
jurisdiction is the controllable electronic record's jurisdiction.
(2) If subdivision (1) does not apply, and the rules of the system
in which the controllable electronic record is recorded are readily
available for review and expressly provide that a particular
jurisdiction is the controllable electronic record's jurisdiction for
purposes of this chapter or IC 26-1, that jurisdiction is the
controllable electronic record's jurisdiction.
(3) If subdivisions (1) and (2) do not apply, and the controllable
electronic record, or a record that is attached to or logically
associated with the controllable electronic record and that is
readily available for review, expressly provides that the
controllable electronic record is governed by the law of a
particular jurisdiction, that jurisdiction is the controllable
electronic record's jurisdiction.
(4) If subdivisions (1) through (3) do not apply, and the rules of
the system in which the controllable electronic record is recorded
are readily available for review and expressly provide that the
controllable electronic record or the system is governed by the
law of a particular jurisdiction, that jurisdiction is the controllable
electronic record's jurisdiction.
(5) If subdivisions (1) through (4) do not apply, the controllable
electronic record's jurisdiction is the District of Columbia.
(d) If subsection (c)(5) applies and this chapter is not in effect in the
District of Columbia without material modification, the governing law
for a matter covered by this chapter is the law of the District of
Columbia as though this chapter were in effect in the District of
Columbia without material modification.
(e) To the extent that subsections (a) and (b) provide that the local
law of the controllable electronic record's jurisdiction governs a matter
covered by this chapter, that law governs even if the matter or a
transaction to which the matter relates does not bear any relation to the
controllable record's jurisdiction.
(f) The rights acquired under section 104 of this chapter by a
purchaser or a qualifying purchaser are governed by the law applicable
under this section at the time of purchase.

Legislative History

As added by P.L.199-2023, SEC.90.