KRS 355.9-306: Law governing perfection and priority of security interests in letter -of-

credit rights.

(1) Subject to subsection (3) of this section, the local law of the issuer's jurisdiction or a

nominated person's jurisdiction governs perfection, the effect of perfection or

nonperfection, and the priority of a security interest in a letter -of-credit right if the

issuer's jurisdiction or nominated person's jurisdiction is a state.

(2) For purposes of this part of this article, an issuer's jurisdiction or nominated person's

jurisdiction is the jurisdiction whose law governs the liability of the issuer or

nominated person with respect to the letter -of-credit right as provided in KRS

355.5-116.

(3) This section does not apply to a security interest that is perfected only under KRS

355.9-308(4).