KRS 355.9-305: Law governing perfection and priority of security interests in investment

property.

(1) Except as otherwise provided in subsection (3) of this section, the following rules

apply:

(a) While a security certificate is located in a jurisd iction, the local law of that

jurisdiction governs perfection, the effect of perfection or nonperfection, and

the priority of a security interest in the certificated security represented

thereby;

(b) The local law of the issuer's jurisdiction as specified in KRS 355.8 -110(4)

governs perfection, the effect of perfection or nonperfection, and the priority

of a security interest in an uncertificated security;

(c) The local law of the securities intermediary's jurisdiction as specified in KRS

355.8-110(5) governs perfection, the effect of perfection or nonperfection, and

the priority of a security interest in a security entitlement or securities

account;

(d) The local law of the commodity intermediary's jurisdiction governs

perfection, the effect of perfection o r nonperfection, and the priority of a

security interest in a commodity contract or commodity account; and

(e) Paragraphs (b), (c), and (d) of this subsection apply even if the transaction

does not bear any relation to the jurisdiction.

(2) The following rules determine a commodity intermediary's jurisdiction for purposes

of this part of this article:

(a) If an agreement between the commodity intermediary and commodity

customer governing the commodity account expressly provides that a

particular jurisdictio n is the commodity intermediary's jurisdiction for

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

is the commodity intermediary's jurisdiction;

(b) If paragraph (a) of this subsection does not apply and an agreement between

the commodity intermediary and commodity customer governing the

commodity account expressly provides that the agreement is governed by the

law of a particular jurisdiction, that jurisdiction is the commodity

intermediary's jurisdiction;

(c) If nei ther paragraph (a) nor paragraph (b) of this subsection applies and an

agreement between the commodity intermediary and commodity customer

governing the commodity account expressly provides that the commodity

account is maintained at an office in a particu lar jurisdiction, that jurisdiction

is the commodity intermediary's jurisdiction;

(d) If none of the preceding paragraphs applies, the commodity intermediary's

jurisdiction is the jurisdiction in which the office identified in an account

statement as the office serving the commodity customer's account is located;

and

(e) If none of the prec eding paragraphs applies, the commodity intermediary's

jurisdiction is the jurisdiction in which the chief executive office of the

commodity intermediary is located.

(3) The local law of the jurisdiction in which the debtor is located governs:

(a) Perfection of a security interest in investment property by filing;

(b) Automatic perfection of a security interest in investment property created by a

broker or securities intermediary; and

(c) Automatic perfection of a security interest in a commodity contract o r

commodity account created by a commodity intermediary.