Priority of Security Interests in Letter-of-Credit Right

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The following rules govern priority among conflicting security interests in the same letter-of-credit right:

  1. A security interest held by a secured party having control of the letter-of-credit right under § 47-9-107 has priority to the extent of its control over a conflicting security interest held by a secured party that does not have control.
  2. Security interests perfected by control under § 47-9-314 rank according to priority in time of obtaining control.


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