Law Governing Perfection and Priority of Security Interests in Deposit Accounts

1. Law
2. Georgia Code
3. Commercial Code
4. Secured Transactions
5. Perfection and Priority
6. Law Governing Perfection and Priority of Security Interests in Deposit Accounts

1. Law of bank's jurisdiction governs. The local law of a bank's jurisdiction governs perfection, the effect of perfection or nonperfection, and the priority of a security interest in a deposit account maintained with that bank.
2. Bank's jurisdiction. The following rules determine a bank's jurisdiction for purposes of this part:
   1. If an agreement between the bank and its customer governing the deposit account expressly provides that a particular jurisdiction is the bank's jurisdiction for purposes of this part, this article, or this title, that jurisdiction is the bank's jurisdiction;
   2. If paragraph (1) of this subsection does not apply and an agreement between the bank and its customer governing the deposit account expressly provides that the agreement is governed by the law of a particular jurisdiction, that jurisdiction is the bank's jurisdiction;
   3. If neither paragraph (1) nor (2) of this subsection applies and an agreement between the bank and its customer governing the deposit account expressly provides that the deposit account is maintained at an office in a particular jurisdiction, that jurisdiction is the bank's jurisdiction;
   4. If none of the preceding paragraphs of this subsection applies, the bank's jurisdiction is the jurisdiction in which the office identified in an account statement as the office serving the customer's account is located; and
   5. If none of the preceding paragraphs of this subsection applies, the bank's jurisdiction is the jurisdiction in which the chief executive office of the bank is located.

(Code 1981, §11-9-304, enacted by Ga. L. 2001, p. 362, § 1; Ga. L. 2002, p. 995, § 4.)

The 2002 amendment, effective July 1, 2002, substituted "its customer" for "the debtor" near the beginning of paragraph (b)(1).

Editor's notes.

- Ga. L. 2002, p. 995, § 8, not codified by the General Assembly, provides that: "This Act shall become effective July 1, 2002, and shall apply to a letter of credit that is issued on or after July 1, 2002. This Act does not apply to a transaction, event, obligation, or duty arising out of or associated with a letter of credit that was issued before July 1, 2002."

RESEARCH REFERENCES

U.L.A.

- Uniform Commercial Code (U.L.A.) § 9-304.

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