§ 9—306A. Law governing perfection and priority of security interests in chattel paper
(a) Except as provided in subsection (d) of this section, if chattel paper is evidenced
only by an authoritative electronic copy of the chattel paper or is evidenced by an
authoritative electronic copy and an authoritative tangible copy, the local law of
the chattel paper’s jurisdiction governs perfection, the effect of perfection or nonperfection,
and the priority of a security interest in the chattel paper, even if the transaction
does not bear any relation to the chattel paper’s jurisdiction.
(b) The following rules determine the chattel paper’s jurisdiction under this section:
(1) If the authoritative electronic copy of the record evidencing chattel paper, or a
record attached to or logically associated with the electronic copy and readily available
for review, expressly provides that a particular jurisdiction is the chattel paper’s
jurisdiction for purposes of this section, this article, or the Uniform Commercial
Code, that jurisdiction is the chattel paper’s jurisdiction.
(2) If subdivision (1) of this subsection does not apply and the rules of the system in
which the authoritative electronic copy is recorded are readily available for review
and expressly provide that a particular jurisdiction is the chattel paper’s jurisdiction
for purposes of this part, this article, or the Uniform Commercial Code, that jurisdiction
is the chattel paper’s jurisdiction.
(3) If subdivisions (1) and (2) of this subsection do not apply and the authoritative
electronic copy, or a record attached to or logically associated with the electronic
copy and readily available for review, expressly provides that the chattel paper is
governed by the law of a particular jurisdiction, that jurisdiction is the chattel
paper’s jurisdiction.
(4) If subdivisions (1), (2), and (3) of this subsection do not apply and the rules of
the system in which the authoritative electronic copy is recorded are readily available
for review and expressly provide that the chattel paper or the system is governed
by the law of a particular jurisdiction, that jurisdiction is the chattel paper’s
jurisdiction.
(5) If subdivisions (1) through (4) of this subsection do not apply, the chattel paper’s
jurisdiction is the jurisdiction in which the debtor is located.
(c) If an authoritative tangible copy of a record evidences chattel paper and the chattel
paper is not evidenced by an authoritative electronic copy, while the authoritative
tangible copy of the record evidencing chattel paper is located in a jurisdiction,
the local law of that jurisdiction governs:
(1) perfection of a security interest in the chattel paper by possession under section 9—314A of this title; and
(2) the effect of perfection or nonperfection and the priority of a security interest
in the chattel paper.
(d) The local law of the jurisdiction in which the debtor is located governs perfection
of a security interest in chattel paper by filing. (Added 2025, No. 17, § 9, eff. July 1, 2025.)