Law governing perfection and priority of security interests.

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Except as otherwise provided in Sections 36-9-303 through 36-9-306, 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 governs perfection, the effect of perfection or nonperfection, and the priority of a possessory security interest in that collateral.

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

(A) perfection of a security interest in the goods by filing a fixture filing;

(B) perfection of a security interest in timber to be cut; and

(C) the effect of perfection or nonperfection and the priority of a nonpossessory security interest 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.

HISTORY: 1962 Code Section 10.9-301; 1966 (54) 2716; 1979 Act No. 183 Section 1; 1988 Act No. 494, Section 5; 2000 Act No. 339, Section 1; 2001 Act No. 67, Section 12; 2014 Act No. 213 (S.343), Section 38, eff October 1, 2014.

Effect of Amendment

2014 Act No. 213, Section 38, in subsection (3), inserted "tangible" before "negotiable documents".


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