Law governing perfection and priority of security interests.

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Except as otherwise provided in sections 4-9-303 to 4-9-306, the following rules determine the law governing perfection, the effect of perfection or nonperfection, and the priority of a security interest in collateral:

  1. Except as otherwise provided in this section, while a debtor 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 collateral.

  2. While collateral is located in a jurisdiction, the local law of that jurisdiction governsperfection, the effect of perfection or nonperfection, and the priority of a possessory security interest in that collateral.

  3. Except as otherwise provided in paragraph (4) of this section, while tangible negotiable documents, goods, instruments, money, or tangible chattel paper is located in a jurisdiction, the local law of that jurisdiction governs:

  1. Perfection of a security interest in the goods by filing a fixture filing;

  2. Perfection of a security interest in timber to be cut; and

  3. The effect of perfection or nonperfection and the priority of a nonpossessory securityinterest in the collateral.

(4) The local law of the jurisdiction in which the wellhead or minehead is located governs perfection, the effect of perfection or nonperfection, and the priority of a security interest in as-extracted collateral.

Source: L. 2001: Entire article R&RE, p. 1341, § 1, effective July 1. L. 2006: IP(3) amended, p. 501, § 37, effective September 1.

Editor's note: This section is similar to former § 4-9-103 as it existed prior to 2001.

  1. Law governing perfection and priority of agricultural liens. While farm products are located in a jurisdiction, the local law of that jurisdiction governs perfection, the effect of perfection or nonperfection, and the priority of an agricultural lien on the farm products. Source: L. 2001: Entire article R&RE, p. 1342, § 1, effective July 1.

  2. Law governing perfection and priority of security interests in goods covered by a certificate of title. (a) This section applies to goods covered by a certificate of title, even if there is no other relationship between the jurisdiction under whose certificate of title the goods are covered and the goods or the debtor.

  1. Goods become covered by a certificate of title when a valid application for the certificate of title and the applicable fee are delivered to the appropriate authority. Goods cease to be covered by a certificate of title at the earlier of the time the certificate of title ceases to be effective under the law of the issuing jurisdiction or the time the goods become covered subsequently by a certificate of title issued by another jurisdiction.

  2. The local law of the jurisdiction under whose certificate of title the goods are coveredgoverns perfection, the effect of perfection or nonperfection, and the priority of a security interest in goods covered by a certificate of title from the time the goods become covered by the certificate of title until the goods cease to be covered by the certificate of title.

Source: L. 2001: Entire article R&RE, p. 1342, § 1, effective July 1.

Editor's note: This section is similar to former § 4-9-103 as it existed prior to 2001.


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