2000 Minnesota Statutes

     336.9-304 Law governing perfection and priority of 
  security interests in deposit accounts. 

    (a)    Law of bank's jurisdiction governs.  The local 
 law of a bank's jurisdiction governs perfection, the effect of 
 perfection or nonperfection, and the priority of a security 
 interest in a deposit account maintained with that bank. 

    (b)    Bank's jurisdiction.  The following rules 
 determine a bank's jurisdiction for purposes of this part: 

    (1) If an agreement between the bank and the debtor 
 governing the deposit account expressly provides that a 
 particular jurisdiction is the bank's jurisdiction for purposes 
 of this part, this article, or this chapter, that jurisdiction 
 is the bank's jurisdiction. 

    (2) If paragraph (1) does not apply and an agreement 
 between the bank and its customer governing the deposit account 
 expressly provides that the agreement is governed by the law of 
 a particular jurisdiction, that jurisdiction is the bank's 
 jurisdiction. 

    (3) If neither paragraph (1) nor paragraph (2) applies and 
 an agreement between the bank and its customer governing the 
 deposit account expressly provides that the deposit account is 
 maintained at an office in a particular jurisdiction, that 
 jurisdiction is the bank's jurisdiction. 

    (4) If none of the preceding paragraphs applies, the bank's 
 jurisdiction is the jurisdiction in which the office identified 
 in an account statement as the office serving the customer's 
 account is located. 

    (5) If none of the preceding paragraphs applies, the bank's 
 jurisdiction is the jurisdiction in which the chief executive 
 office of the bank is located. 

    HIST: 2000 c 399 art 1 s 24 

*   NOTE:  This section, as added by Laws 2000, chapter 399, 
*article 1, section 24, is effective July 1, 2001.  Laws 2000, 
*chapter 399, article 1, section 130. 

*   NOTE:  Minnesota Statutes 1998, section 336.9-304, which 
*reads as follows, is repealed July 1, 2001.  Laws 2000, chapter 
*399, article 1, section 130. 

*   "336.9-304 Perfection of security interest in 
*instruments, documents, proceeds of a written letter of credit, 
*and goods covered by documents; perfection by permissive filing; 
*temporary perfection without filing or transfer of possession. 

*   (1) A security interest in chattel paper or negotiable 
*documents may be perfected by filing.  A security interest in 
*the rights to proceeds of a written letter of credit can be 
*perfected only by the secured party's taking possession of the 
*letter of credit.  A security interest in money or instruments 
*(other than instruments which constitute part of chattel paper) 
*can be perfected only by the secured party's taking possession, 
*except as provided in subsections (4) and (5) of this section 
*and subsections (2) and (3) of section 336.9-306 on proceeds. 

*   (2) During the period that goods are in the possession of 
*the issuer of a negotiable document therefor, a security 
*interest in the goods is perfected by perfecting a security 
*interest in the document, and any security interest in the goods 
*otherwise perfected during such period is subject thereto. 

*   (3) A security interest in goods in the possession of a 
*bailee other than one who has issued a negotiable document 
*therefor is perfected by issuance of a document in the name of 
*the secured party or by the bailee's receipt of notification of 
*the secured party's interest or by filing as to the goods. 

*   (4) A security interest in instruments, certificated 
*securities, or negotiable documents is perfected without filing 
*or the taking of possession for a period of 21 days from the 
*time it attaches to the extent that it arises for new value 
*given under a written security agreement. 

*   (5) A security interest remains perfected for a period of 
*21 days without filing where a secured party having a perfected 
*security interest in an instrument, a certificated security, a 
*negotiable document, or goods in possession of a bailee other 
*than one who has issued a negotiable document therefor: 

*   (a) makes available to the debtor the goods or documents 
*representing the goods for the purpose of ultimate sale or 
*exchange or for the purpose of loading, unloading, storing, 
*shipping, transshipping, manufacturing, processing or otherwise 
*dealing with them in a manner preliminary to their sale or 
*exchange but priority between conflicting security interests in 
*the goods is subject to subsection (3) of section 336.9-312; or 

*   (b) delivers the instrument or certificated security to the 
*debtor for the purpose of ultimate sale or exchange or of 
*presentation, collection, renewal, or registration of transfer. 

*   (6) After the 21 day period in subsections (4) and (5) 
*perfection depends upon compliance with applicable provisions of 
*this article."