5. Change in Law Governing Perfection. When the issuer's jurisdiction, the securities intermediary's jurisdiction, or commodity intermediary's jurisdiction changes, the jurisdiction whose law governs perfection under subsection (a) [Maine cite subsection (1)] changes, as well. Similarly, the law governing perfection of a possessory security interest in a certificated security changes when the collateral is removed to another jurisdiction, see subsection (a)(1) [Maine cite subsection (1), paragraph (a)], and the law governing perfection by filing changes when the debtor changes its location. See subsection (c) [Maine cite subsection (3)]. Nevertheless, these changes will not result in an immediate loss of perfection. See Section 9-316 [Maine cite section 9-1316].

§9-1306.__Law governing perfection and priority of security

interests in letter-of-credit rights

(1)__Subject to subsection (3), 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, 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 section 5- 116.

(3)__This section does not apply to a security interest that is perfected only under section 9-1308, subsection (4).

Official Comment

1. Source. New; derived in part from Section 8-110(e) and former Section 9-103(6).

2. Sui Generis Treatment. This section governs the applicable law for perfection and priority of security interests in letter-of-credit rights, other than a security interest perfected only under Section 9-308(d) [Maine cite section 9-1308, subsection (4)] (i.e., as a supporting obligation). The treatment differs substantially from that provided in Section 9- 304 [Maine cite section 9-1304] for deposit accounts. The basic rule is that the law of the issuer's or nominated person's