                                 CODE OF VIRGINIA

LAW GOVERNING PERFECTION AND PRIORITY OF SECURITY INTERESTS IN CHATTEL PAPER (§
8.9A-306.1)

a. Chattel paper evidenced by authoritative electronic copy. Except as provided
in subsection (d), if chattel paper is evidenced only by an authoritative
electronic copy of the chattel paper or is evidenced by an authoritative
electronic copy and an authoritative tangible copy, the local law of the chattel
paper&#8217;s jurisdiction governs perfection, the effect of perfection or
nonperfection, and the priority of a security interest in the chattel paper,
even if the transaction does not bear any relation to the chattel paper&#8217;s
jurisdiction.

b. Chattel paper&#8217;s jurisdiction. The following rules determine the chattel
paper&#8217;s jurisdiction under this section:

   1. If the authoritative electronic copy of the record evidencing chattel
   paper, or a record attached to or logically associated with the electronic
   copy and readily available for review, expressly provides that a particular
   jurisdiction is the chattel paper&#8217;s jurisdiction for purposes of this
   part, this article, or the Uniform Commercial Code, that jurisdiction is the
   chattel paper&#8217;s jurisdiction.

   2. If paragraph (1) does not apply and the rules of the system in which the
   authoritative electronic copy is recorded are readily available for review and
   expressly provide that a particular jurisdiction is the chattel paper&#8217;s
   jurisdiction for purposes of this part, this article, or the Uniform
   Commercial Code, that jurisdiction is the chattel paper&#8217;s jurisdiction.

   3. If paragraphs (1) and (2) do not apply and the authoritative electronic
   copy, or a record attached to or logically associated with the electronic copy
   and readily available for review, expressly provides that the chattel paper is
   governed by the law of a particular jurisdiction, that jurisdiction is the
   chattel paper&#8217;s jurisdiction.

   4. If paragraphs (1), (2), and (3) do not apply and the rules of the system in
   which the authoritative electronic copy is recorded are readily available for
   review and expressly provide that the chattel paper or the system is governed
   by the law of a particular jurisdiction, that jurisdiction is the chattel
   paper&#8217;s jurisdiction.

   5. If paragraphs (1) through (4) do not apply, the chattel paper&#8217;s
   jurisdiction is the jurisdiction in which the debtor is located.

c. Chattel paper evidenced by authoritative tangible copy. If an authoritative
tangible copy of a record evidences chattel paper and the chattel paper is not
evidenced by an authoritative electronic copy, while the authoritative tangible
copy of the record evidencing chattel paper is located in a jurisdiction, the
local law of that jurisdiction governs:

   1. perfection of a security interest in the chattel paper by possession under
   &#xA7; 8.9A-314.1; and

   2. the effect of perfection or nonperfection and the priority of a security
   interest in the chattel paper.

d. When perfection governed by law of jurisdiction where debtor located. The
local law of the jurisdiction in which the debtor is located governs perfection
of a security interest in chattel paper by filing.

HISTORY: 2024, c. 652.