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The Vermont Statutes Online



Title

09A

:
Uniform Commercial Code






Chapter

009

:
Secured Transactions











 

§

9-305. Law governing perfection and priority of security interests in

investment property

(a) 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 subsection 8-110(d) of this

title 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 subsection

8-110(e) of this title 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.

(b) 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 article,

or this title, that jurisdiction is the commodity intermediary's jurisdiction.

(2) If

subdivision (1) of this subsection 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

subdivision (1) nor subdivision (2) of this section 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 subdivisions of this subsection applies, 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 subdivisions of this subsection applies, the commodity

intermediary's jurisdiction is the jurisdiction in which the chief executive

office of the commodity intermediary is located.

(c) 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. (Added 1999, No. 106 (Adj. Sess.), § 2,

eff. July 1, 2001.)