U.C.C. § 9-301 — Law Governing Perfection and Priority of Security Interests

Editorial summary. Section 9-301 supplies the general choice-of-law rules for perfection and priority. For most collateral, the local law of the debtor's location governs (§ 9-301(1)). For possessory security interests, tangible negotiable documents, goods, instruments, money, and tangible chattel paper, the local law of the collateral's location governs perfection and priority.

Citation: U.C.C. § 9-301 (Am. L. Inst. & Unif. L. Comm'n 1998)Jurisdiction: United StatesEffective: 2001-07-01

School

Commercial Law

Text

Governing Rule

Codified text.

Editorial note. Section 9-301(1) states the general rule: while a debtor is located in a jurisdiction, the local law of that jurisdiction governs perfection, the effect of perfection or nonperfection, and priority of a security interest. Subsections (2)–(4) provide special rules for possessory and location-fixed collateral.

Doctrinal Significance

Codified text.

Editorial note. Revised Article 9 adopted debtor's location (not collateral's location) as the general rule, greatly simplifying multi-state secured financing. For registered organizations, the debtor is located in its State of organization (§ 9-307(e)).

Cross References

Codified text.

Editorial note. See U.C.C. §§ 9-307 (debtor's location); 9-316 (change of governing law); 9-501 (filing office).

Revision history

1998-07-25 — Revised Article 9 promulgated.

Canonical source: https://www.law.cornell.edu/ucc/9/9-301

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U.C.C. § 9-203 — Attachment and Enforceability of Security Interest; Proceeds; Supporting Obligations; Formal Requisites

U.C.C. § 9-308 — When Security Interest or Agricultural Lien Is Perfected; Continuity of Perfection

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