§ 10:9-305 — Law governing perfection and priority of security interests in investment property

§9-305. Law governing perfection and priority of security interests in investment property
(a) Governing law: general rules. Except as otherwise provided in Subsection (c) of
this Section, 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 R.S. 10:8-110(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 R.S.
10:8-110(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.
(5) Paragraphs (2), (3), and (4) of this Subsection apply even if the transaction does
not bear any relation to the jurisdiction.
(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 Chapter, or this Title,
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.

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 1995, No. 1201, §3, eff. June 29, 1995; Acts 1999, No. 171, §3, eff. Jan. 1, 2000; Acts 2001, No. 128, §1, eff. July 1, 2001; Acts 2024, No. 773, §1.