41-09-25. (9-305) Law governing perfection and priority of security interests in
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/nd/title-41/chapter-41-09-secured-transactions/41-09-25·A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
investment property.
1. Except as otherwise provided in subsection 3, the following rules apply:
a. 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.
b. The local law of the issuer's jurisdiction as specified in subsection 4 of section
41-08-10 governs perfection, the effect of perfection or nonperfection, and the
priority of a security interest in an uncertificated security.
c. The local law of the securities intermediary's jurisdiction as specified in
subsection 5 of section 41-08-10 governs perfection, the effect of perfection or
nonperfection, and the priority of a security interest in a security entitlement or
securities account.
d. 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.
e. Subdivisions b, c, and d apply even if the transaction does not bear any relation
to the jurisdiction.
2. The following rules determine a commodity intermediary's jurisdiction for purposes of
sections 41-09-21 through 41-09-62:
a. 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 sections 41-09-21
through 41-09-62, this chapter, or this title, that jurisdiction is the commodity
intermediary's jurisdiction.
b. If subdivision a 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.
c. If neither subdivision a nor b 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.
d. If none of the preceding subdivisions 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.
e. If none of the preceding subdivisions applies, the commodity intermediary's
jurisdiction is the jurisdiction in which the chief executive office of the commodity
intermediary is located.
3. The local law of the jurisdiction in which the debtor is located governs:
a. Perfection of a security interest in investment property by filing;
b. Automatic perfection of a security interest in investment property created by a
broker or securities intermediary; and
c. Automatic perfection of a security interest in a commodity contract or commodity
account created by a commodity intermediary.