                                 CODE OF VIRGINIA

LAW GOVERNING PERFECTION AND PRIORITY OF SECURITY INTERESTS IN DEPOSIT ACCOUNTS
(§ 8.9A-304)

a. Law of bank&#8217;s jurisdiction governs. The local law of a bank&#8217;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 even if the transaction does not bear any relation to the bank&#8217;s
jurisdiction.

b. Bank&#8217;s jurisdiction. The following rules determine a bank&#8217;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&#8217;s
   jurisdiction for purposes of this part, this title, or the Uniform Commercial
   Code, that jurisdiction is the bank&#8217;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&#8217;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&#8217;s jurisdiction.

   4. If none of the preceding paragraphs applies, the bank&#8217;s jurisdiction
   is the jurisdiction in which the office identified in an account statement as
   the office serving the customer&#8217;s account is located.

   5. If none of the preceding paragraphs applies, the bank&#8217;s jurisdiction
   is the jurisdiction in which the chief executive office of the bank is
   located.

HISTORY: 2000, c. 1007; 2024, c. 652.