PARRIS N. GLENDENING, Governor

Ch. 92

HOLDERS WHO HAVE SECURITY ENTITLEMENTS WITH RESPECT TO THAT FINANCIAL
ASSET IF THE CREDITOR HAS CONTROL OVER THE FINANCIAL ASSET.

(C) IF A CLEARING CORPORATION DOES NOT HAVE SUFFICIENT FINANCIAL
ASSETS TO SATISFY BOTH ITS OBLIGATIONS TO ENTITLEMENT HOLDERS WHO HAVE
SECURITY ENTITLEMENTS WITH RESPECT TO A FINANCIAL ASSET AND ITS
OBLIGATION TO A CREDITOR OF THE CLEARING CORPORATION WHO HAS A
SECURITY INTEREST IN THAT FINANCIAL ASSET, THE CLAIM OF THE CREDITOR HAS
PRIORITY OVER THE CLAIMS OF ENTITLEMENT HOLDERS.

9-103.

(6) [The law (including the conflict of laws rules) of the jurisdiction of
organization of the issuer governs the perfection and the effect of perfection or
nonperfection of a security interest in uncertificated securities.]

(A)    THIS SUBSECTION APPLIES TO INVESTMENT PROPERTY.

(B)     EXCEPT AS OTHERWISE PROVIDED IN PARAGRAPH (F), DURING THE
TIME THAT A SECURITY CERTIFICATE IS LOCATED IN A JURISDICTION, PERFECTION
OF A SECURITY INTEREST, THE EFFECT OF PERFECTION OR NONPERFECTION, AND
THE PRIORITY OF A SECURITY INTEREST IN THE CERTIFICATED SECURITY
REPRESENTED THEREBY ARE GOVERNED BY THE LOCAL LAW OF THAT
JURISDICTION.

(C)     EXCEPT AS OTHERWISE PROVIDED IN PARAGRAPH (F), PERFECTION
OF A SECURITY INTEREST, THE EFFECT OF PERFECTION OR NONPERFECTION, AND
THE PRIORITY OF A SECURITY INTEREST IN AN UNCERTIFICATED SECURITY ARE
GOVERNED BY THE LOCAL LAW OF THE ISSUER'S JURISDICTION AS SPECIFIED IN §
8-110(D).

(D)    EXCEPT AS OTHERWISE PROVIDED IN PARAGRAPH (F), PERFECTION
OF A SECURITY INTEREST, THE EFFECT OF PERFECTION OR NONPERFECTION, AND
THE PRIORITY OF A SECURITY INTEREST IN A SECURITY ENTITLEMENT OR
SECURITIES ACCOUNT ARE GOVERNED BY THE LOCAL LAW OF THE SECURITIES
INTERMEDIARY'S JURISDICTION AS SPECIFIED IN § 8-110(E).

(E)     EXCEPT AS OTHERWISE PROVIDED IN PARAGRAPH (F), PERFECTION
OF A SECURITY INTEREST, THE EFFECT OF PERFECTION OR NONPERFECTION, AND
THE PRIORITY OF A SECURITY INTEREST IN A COMMODITY CONTRACT OR
COMMODITY ACCOUNT ARE GOVERNED BY THE LOCAL LAW OF THE COMMODITY
INTERMEDIARY'S JURISDICTION. THE FOLLOWING RULES DETERMINE A
"COMMODITY INTERMEDIARY'S JURISDICTION" FOR PURPOSES OF THIS
PARAGRAPH:

(1)     IF AN AGREEMENT BETWEEN THE COMMODITY
INTERMEDIARY AND COMMODITY CUSTOMER SPECIFIES THAT IT IS GOVERNED BY
THE LAW OF A PARTICULAR JURISDICTION, THAT JURISDICTION IS THE
COMMODITY INTERMEDIARY'S JURISDICTION.

(2)     IF AN AGREEMENT BETWEEN THE COMMODITY
INTERMEDIARY AND COMMODITY CUSTOMER DOES NOT SPECIFY THE GOVERNING

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