KRS 355.9-304: Law governing perfection and priority of security interests in deposit

accounts.

(1) 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 de posit account maintained

with that bank even if the transaction does not bear any relation to the bank's

jurisdiction.

(2) The following rules determine a bank's jurisdiction for purposes of this part of this

article:

(a) If an agreement between the bank a nd its customer governing the deposit

account expressly provides that a particular jurisdiction is the bank's

jurisdiction for purposes of this part of this article, this article, or this chapter,

that jurisdiction is the bank's jurisdiction;

(b) If paragraph (a) 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;

(c) If neither paragraph (a) nor (b) 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;

(d) If none of the preceding paragraphs 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

(e) If none of the preceding paragraphs applies, the bank's jurisdiction is the

jurisdiction in which the chief executive office of the bank is located.