Louisiana § 10:9-304 Law governing perfection and priority of security interests in deposit accounts

Louisiana Statutes

§ 10:9-304 — Law governing perfection and priority of security interests in deposit accounts

Louisiana·Title 10 Commercial Laws

§9-304. Law governing perfection and priority of security interests in deposit accounts

(a)Law of bank's jurisdiction governs. 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 even if the transaction does not bear any relation to the bank's jurisdiction.

(b)Bank's jurisdiction. The following rules determine a bank's jurisdiction for purposes of this Part:

(1)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, this Chapter, or this Title, that jurisdiction is the bank's jurisdiction.

(2)If Paragraph (1) does not apply a

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§9-304. Law governing perfection and priority of security interests in deposit accounts
(a) Law of bank's jurisdiction governs. 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 even if the transaction does not bear any relation
to the bank's jurisdiction.
(b) Bank's jurisdiction. The following rules determine a bank's jurisdiction for
purposes of this Part:
(1) 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, this Chapter, or this Title, that jurisdiction is the bank's jurisdiction.
(2) If Paragraph (1) 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.
(3) If neither Paragraph (1) nor Paragraph (2) 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.
(4) 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.
(5) 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.

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Legislative History

Acts 1988, No. 528, §1, eff. Jan. 1, 1990; Acts 1989, No. 135, §7, eff. Jan. 1, 1990; Acts 1990, No. 1079, §4, eff. Sept. 1, 1990; Acts 1991, No. 377, §4, eff. Jan. 1, 1992; Acts 1995, No. 884, §4, eff. Jan. 1, 1996; Acts 1999, No. 171, §3, eff. Jan. 1, 2000; Acts 2001, No. 128, §1, eff. July 1, 2001; Acts 2004, No. 303, §2; Acts 2024, No. 773, §1.