§ 10:12-107 — Governing law

§12-107. Governing law
(a) Governing law: general rule. Except as provided in Subsection (b) of this
Section, the local law of a controllable electronic record's jurisdiction governs a matter
covered by this Chapter.
(b) Governing law: R.S. 10:12-106. For a controllable electronic record that
evidences a controllable account or controllable payment intangible, the local law of the
controllable electronic record's jurisdiction governs a matter covered by R.S. 10:12-106
unless an effective agreement determines that the local law of another jurisdiction governs.
(c) Controllable electronic record's jurisdiction. The following rules determine a
controllable electronic record's jurisdiction under this Section:
(1) If the controllable electronic record, or a record attached to or logically associated
with the controllable electronic record and readily available for review, expressly provides
that a particular jurisdiction is the controllable electronic record's jurisdiction for purposes
of this Chapter or this Title, that jurisdiction is the controllable electronic record's
jurisdiction.
(2) If Paragraph (1) of this Subsection 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 this Title, that jurisdiction is the controllable
electronic record's jurisdiction.
(3) If Paragraphs (1) and (2) of this Subsection do not apply and the controllable
electronic record, or a record attached to or logically associated with the controllable
electronic record and 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 Paragraphs (1), (2), and (3) of this Subsection 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 Paragraphs (1) through (4) of this Subsection do not apply, the controllable
electronic record's jurisdiction is the District of Columbia.
(d) Applicability of Article 12. If Paragraph (c)(5) of this Section applies and Article
12 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
Article 12 were in effect in the District of Columbia without material modification. In this
Subsection, "Article 12" means Article 12 of Uniform Commercial Code Amendments
(2022).
(e) Relation of matter or transaction to controllable electronic record's jurisdiction
not necessary. To the extent Subsections (a) and (b) of this Section 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 electronic record's jurisdiction.
(f) Rights of purchasers determined at time of purchase. The rights acquired under
R.S. 10:12-104 by a purchaser or qualifying purchaser are governed by the law applicable
under this Section at the time of purchase.

Legislative History

Acts 2024, No. 773, §1.