                                 CODE OF VIRGINIA

LAW GOVERNING PERFECTION AND PRIORITY OF SECURITY INTERESTS IN LETTER-OF-CREDIT
RIGHTS (§ 8.9A-306)

a. Governing law; issuer&#8217;s or nominated person&#8217;s jurisdiction.
Subject to subsection (c), the local law of the issuer&#8217;s jurisdiction or a
nominated person&#8217;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&#8217;s jurisdiction or nominated
person&#8217;s jurisdiction is a state.

b. Issuer&#8217;s or nominated person&#8217;s jurisdiction. For purposes of this
part, an issuer&#8217;s jurisdiction or nominated person&#8217;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 &#xA7;
8.5A-116.

c. When section not applicable. This section does not apply to a security
interest that is perfected only under &#xA7; 8.9A-308 (d).

HISTORY: 2000, c. 1007.