LD 2245
pg. 135
Page 134 of 493 An Act to Adopt the Model Revised Article 9 Secured Transactions Page 136 of 493
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LR 1087
Item 1

 
3. Non-U.S. Debtors. Under the general rules of this
section, a non-U.S. debtor normally would be located in a foreign
jurisdiction and, as a consequence, foreign law would govern
perfection. When foreign law affords no public notice of
security interests, the general rule yields unacceptable results.

 
Accordingly, subsection (c) [Maine cite subsection (3)]
provides that the normal rules for determining the location of a
debtor (i.e., the rules in subsection (b) [Maine cite subsection
(2)]) apply only if they yield a location that is "a jurisdiction
whose law generally requires information concerning the existence
of a nonpossessory security interest to be made generally
available in a filing, recording, or registration system as a
condition or result of the security interest's obtaining priority
over the rights of a lien creditor with respect to the
collateral." The phrase "generally requires" is meant to include
legal regimes that generally require notice in a filing or
recording system as a condition of perfecting nonpossessory
security interests, but which permit perfection by another method
(e.g., control, automatic perfection, temporary perfection) in
limited circumstances. A jurisdiction that has adopted this
Article or an earlier version of this Article is such a
jurisdiction. If the rules in subsection (b) [Maine cite
subsection (2)] yield a jurisdiction whose law does not generally
require notice in a filing or registration system, the debtor is
located in the District of Columbia.

 
Example 1: Debtor is an English corporation with 7 offices in
the United States and its chief executive office in London,
England. Debtor creates a security interest in its accounts.
Under subsection (b)(3) [Maine cite subsection (2), paragraph
(c)], Debtor would be located in England. However, subsection
(c) [Maine cite subsection (3)] provides that subsection (b)
[Maine cite subsection (2)] applies only if English law generally
conditions perfection on giving public notice in a filing,
recording, or registration system. Otherwise, Debtor is located
in the District of Columbia. Under Section 9-301(1) [Maine cite
section 9-1301, subsection (1)], perfection, the effect of
perfection, and priority are governed by the law of the
jurisdiction of the debtor's location--here, England or the
District of Columbia (depending on the content of English law).

 
Example 2: Debtor is an English corporation with 7 offices in
the United States and its chief executive office in London,
England. Debtor creates a security interest in equipment located
in London. Under subsection (b)(3) [Maine cite subsection (2),
paragraph (c)] Debtor would be located in England. However,
subsection (c) [Maine cite subsection (3)] provides that
subsection (b) [Maine cite subsection (2)] applies only if
English law generally conditions perfection on giving public


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