LD 2245, Page 128 - 119th Legislature, FIRST REGULAR Session

	2. Investment Property: General Rules. This section
specifies choice-of-law rules for perfection and priority of
security interests in investment property. Subsection (a)(1)
[Maine cite subsection (1), paragraph (a)] covers security
interests in certificated securities. Subsection (a)(2) [Maine
cite subsection (1), paragraph (b)] covers security interests in
uncertificated securities. Subsection (a)(3) [Maine cite
subsection (1), paragraph (c)] covers security interests in
security entitlements and securities accounts. Subsection (a)(4)
[Maine cite subsection (1), paragraph (d)] covers security
interests in commodity contracts and commodity accounts. The
approach of each of these paragraphs is essentially the same.
They identify the jurisdiction's law that governs questions of
perfection and priority by using the same principles that Article
8 uses to determine other questions concerning that form of
investment property. Thus, for certificated securities, the law
of the jurisdiction in which the certificate is located governs.
Cf. Section 8-110(c). For uncertificated securities, the law of
the issuer's jurisdiction governs. Cf. Section 8-110(a). For
security entitlements and securities accounts, the law of the
securities intermediary's jurisdiction governs. Cf. Section 8-
110(b). For commodity contracts and commodity accounts, the law
of the commodity intermediary's jurisdiction governs. Because
commodity contracts and commodity accounts are not governed by
Article 8, subsection (b) [Maine cite subsection (2)] contains
rules that specify the commodity intermediary's jurisdiction.
These are analogous to the rules in Section 8-110(e) specifying a
securities intermediary's jurisdiction. Subsection (b)(1) [Maine
cite subsection (2), paragraph (a)] affords the parties greater
flexibility than did former Section 9-103(6)(3). See also
Section 9-304(b) [Maine cite section 9-1304, subsection (2)]
(bank's jurisdiction); Revised Section 8-110(e)(1) (securities
intermediary's jurisdiction).

3. Investment Property: Exceptions. Subsection (c) [Maine
cite subsection (3)] establishes an exception to the general
rules set out in subsection (a) [Maine cite subsection (1)]. It
provides that perfection of a security interest by filing,
automatic perfection of a security interest in investment
property created by a debtor who is a broker or securities
intermediary (see Section 9-309(10) [Maine cite section 9-1309,
subsection (10)]), and automatic perfection of a security
interest in a commodity contract or commodity account of a debtor
who is a commodity intermediary (see Section 9-309(11) [Maine
cite section 9-1309, subsection (11)] are governed by the law of
the jurisdiction in which the debtor is located, as determined
under Section 9-307 [Maine cite section 9-1307].

4. Examples: The following examples illustrate the rules in
this section:

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