2256

(a) Governing law: issuer's or nominated person's jurisdiction.— Subject to subsection (c) of this section, 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.\n(b) Issuer's or nominated person's jurisdiction.— For purposes of this subchapter, 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 § 1235 of this title.\n(c) When section not applicable.— This section does not apply to a security interest that is perfected only under § 2258(d) of this title.\nHistory —Sept. 19, 1996, No. 241, added as § 9-306 on Jan. 17, 2012, No. 21, § 11, eff. 1 year after Jan. 17, 2012.