Legislation

* Section 9-306A. Law Governing Perfection and Priority of Security

Interests in Chattel Paper.

(a) Chattel paper evidenced by authoritative electronic copy. Except
as provided in subsection (d), 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) Chattel paper's jurisdiction. 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 part, this article, or this code, that jurisdiction is
the chattel paper's jurisdiction.

(2) If paragraph (1) 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 this code, that jurisdiction is the chattel
paper's jurisdiction.

(3) If paragraphs (1) and (2) 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 paragraphs (1), (2) and (3) 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 paragraphs (1) through (4) do not apply, the chattel paper's
jurisdiction is the jurisdiction in which the debtor is located.

(c) Chattel paper evidenced by authoritative tangible copy. 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; and

(2) the effect of perfection or nonperfection and the priority of a
security interest in the chattel paper.

(d) When perfection governed by law of jurisdiction where debtor
located. The local law of the jurisdiction in which the debtor is
located governs perfection of a security interest in chattel paper by
filing.

* NB Effective June 3, 2026