41-09-26.1. (9-306A) Law governing perfection and priority of security interests in
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/nd/title-41/chapter-41-09-secured-transactions/41-09-26-1·A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
chattel paper.
1. Except as provided in subsection 4, 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.
2. The following rules determine the chattel paper's jurisdiction under this section:
a. 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 chapter, or this title, that
jurisdiction is the chattel paper's jurisdiction.
b. If subdivision a 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 section, this chapter, or this title, that jurisdiction is the chattel
paper's jurisdiction.
c. If subdivisions a and b 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.
d. If subdivisions a, b, and c 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.
e. If subdivisions a, b, c, and d do not apply, the chattel paper's jurisdiction is the
jurisdiction in which the debtor is located.
3. 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:
a. Perfection of a security interest in the chattel paper by possession under section
41-09-34.1; and
b. The effect of perfection or nonperfection and the priority of a security interest in
the chattel paper.
4. The local law of the jurisdiction in which the debtor is located governs perfection of a
security interest in chattel paper by filing.