{"data":{"id":"us-ky/krs-355.9-305","jurisdiction":"us-ky","citation":"KRS 355.9-305","heading":"Law governing perfection and priority of security interests in investment","body":"property.\n(1) Except as otherwise provided in subsection (3) of this section, the following rules\napply:\n(a) While a security certificate is located in a jurisd iction, the local law of that\njurisdiction governs perfection, the effect of perfection or nonperfection, and\nthe priority of a security interest in the certificated security represented\nthereby;\n(b) The local law of the issuer's jurisdiction as specified in KRS 355.8 -110(4)\ngoverns perfection, the effect of perfection or nonperfection, and the priority\nof a security interest in an uncertificated security;\n(c) The local law of the securities intermediary's jurisdiction as specified in KRS\n355.8-110(5) governs perfection, the effect of perfection or nonperfection, and\nthe priority of a security interest in a security entitlement or securities\naccount;\n(d) The local law of the commodity intermediary's jurisdiction governs\nperfection, the effect of perfection o r nonperfection, and the priority of a\nsecurity interest in a commodity contract or commodity account; and\n(e) Paragraphs (b), (c), and (d) of this subsection apply even if the transaction\ndoes not bear any relation to the jurisdiction.\n(2) The following rules determine a commodity intermediary's jurisdiction for purposes\nof this part of this article:\n(a) If an agreement between the commodity intermediary and commodity\ncustomer governing the commodity account expressly provides that a\nparticular jurisdictio n is the commodity intermediary's jurisdiction for\npurposes of this part of this article, this article, or this chapter, that jurisdiction\nis the commodity intermediary's jurisdiction;\n(b) If paragraph (a) of this subsection does not apply and an agreement  between\nthe commodity intermediary and commodity customer governing the\ncommodity account expressly provides that the agreement is governed by the\nlaw of a particular jurisdiction, that jurisdiction is the commodity\nintermediary's jurisdiction;\n(c) If nei ther paragraph (a) nor paragraph (b) of this subsection applies and an\nagreement between the commodity intermediary and commodity customer\ngoverning the commodity account expressly provides that the commodity\naccount is maintained at an office in a particu lar jurisdiction, that jurisdiction\nis the commodity intermediary's jurisdiction;\n(d) If none of the preceding paragraphs applies, the commodity intermediary's\njurisdiction is the jurisdiction in which the office identified in an account\nstatement as the office serving the commodity customer's account is located;\nand\n(e) If none of the prec eding paragraphs applies, the commodity intermediary's\njurisdiction is the jurisdiction in which the chief executive office of the\ncommodity intermediary is located.\n(3) The local law of the jurisdiction in which the debtor is located governs:\n(a) Perfection of a security interest in investment property by filing;\n(b) Automatic perfection of a security interest in investment property created by a\nbroker or securities intermediary; and\n(c) Automatic perfection of a security interest in a commodity contract o r\ncommodity account created by a commodity intermediary.","path":[],"source_url":"https://apps.legislature.ky.gov/law/statutes/statute.aspx?id=55682","current_through":"Includes enactments through the 2026 Regular Session","vintage":"09/05/2026","retrieved_at":"2026-09-05T20:58:48Z","sha256":"cbd72f4f98679d403ca6545204c85cf87477b6db7c993cf084d697a713ea36a4","source_id":"us-ky","stale":false,"prev":"us-ky/krs-355.9-304","next":"us-ky/krs-355.9-306"},"notice":"GroundRules: Original legal text. Not legal advice."}