2000 Minnesota Statutes

     336.9-305 Law governing perfection and priority of 
  security interests in investment property. 

    (a)    Governing law:  general rules.  Except as 
 otherwise provided in subsection (c), the following rules apply: 

    (1) While a security certificate is located in a 
 jurisdiction, the local law of that jurisdiction governs 
 perfection, the effect of perfection or nonperfection, and the 
 priority of a security interest in the certificated security 
 represented thereby. 

    (2) The local law of the issuer's jurisdiction as specified 
 in section 336.8-110(d), governs perfection, the effect of 
 perfection or nonperfection, and the priority of a security 
 interest in an uncertificated security. 

    (3) The local law of the securities intermediary's 
 jurisdiction as specified in section 336.8-110(e), governs 
 perfection, the effect of perfection or nonperfection, and the 
 priority of a security interest in a security entitlement or 
 securities account. 

    (4) The local law of the commodity intermediary's 
 jurisdiction governs perfection, the effect of perfection or 
 nonperfection, and the priority of a security interest in a 
 commodity contract or commodity account. 

    (b)    Commodity intermediary's jurisdiction.  The 
 following rules determine a commodity intermediary's 
 jurisdiction for purposes of this part: 

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

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

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

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

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

    (c)    When perfection governed by law of jurisdiction 
 where debtor located.  The local law of the jurisdiction in 
 which the debtor is located governs: 

    (1) perfection of a security interest in investment 
 property by filing; 

    (2) automatic perfection of a security interest in 
 investment property created by a broker or securities 
 intermediary; and 

    (3) automatic perfection of a security interest in a 
 commodity contract or commodity account created by a commodity 
 intermediary. 

    HIST: 2000 c 399 art 1 s 25 

*   NOTE:  This section, as added by Laws 2000, chapter 399, 
*article 1, section 25, is effective July 1, 2001.  Laws 2000, 
*chapter 399, article 1, section 130. 

*   NOTE:  Minnesota Statutes 1998, section 336.9-305, which 
*reads as follows, is repealed July 1, 2001.  Laws 2000, chapter 
*399, article 1, section 130. 

*   "336.9-305 When possession by secured party perfects 
*security interest without filing. 

*   A security interest in goods, instruments, money, 
*negotiable documents, or chattel paper may be perfected by the 
*secured party's taking possession of the collateral.  A security 
*interest in the rights to proceeds of a written letter of credit 
*may be perfected only by the secured party's taking possession 
*of the letter of credit.  If such collateral other than goods 
*covered by a negotiable document is held by a bailee, the 
*secured party is deemed to have possession from the time the 
*bailee receives notification of the secured party's interest.  A 
*security interest is perfected by possession from the time 
*possession is taken without relation back and continues only so 
*long as possession is retained, unless otherwise specified in 
*this article.  The security interest may be otherwise perfected 
*as provided in this article before or after the period of 
*possession by the secured party."