                                 CODE OF VIRGINIA

LAW GOVERNING PERFECTION AND PRIORITY OF SECURITY INTERESTS IN CONTROLLABLE
ACCOUNTS, CONTROLLABLE ELECTRONIC RECORDS, AND CONTROLLABLE PAYMENT INTANGIBLES
(§ 8.9A-306.2)

a. Governing law: general rules. Except as provided in subsection (b), the local
law of the controllable electronic record&#8217;s jurisdiction specified in
&#xA7; 8.12-107(c) and (d) governs perfection, the effect of perfection or
nonperfection, and the priority of a security interest in a controllable
electronic record and a security interest in a controllable account or
controllable payment intangible evidenced by the controllable electronic record.

b. 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 a controllable account, controllable
   electronic record, or controllable payment intangible by filing; and

   2. automatic perfection of a security interest in a controllable payment
   intangible created by a sale of the controllable payment intangible.

HISTORY: 2024, c. 652.