(E) THIS SECTION PREVAILS OVER ANY INCONSISTENT STATUTE OF THIS
STATE.

9-409. RESTRICTIONS ON ASSIGNMENT OF LETTER-OF-CREDIT RIGHTS
INEFFECTIVE.

(A) A TERM IN A LETTER OF CREDIT OR A RULE OF LAW, STATUTE,
REGULATION, CUSTOM, OR PRACTICE APPLICABLE TO THE LETTER OF CREDIT
WHICH PROHIBITS, RESTRICTS, OR REQUIRES THE CONSENT OF AN APPLICANT,
ISSUER, OR NOMINATED PERSON TO A BENEFICIARY'S ASSIGNMENT OF OR CREATION
OF A SECURITY INTEREST IN A LETTER-OF-CREDIT RIGHT IS INEFFECTIVE TO THE
EXTENT THAT THE TERM OR RULE OF LAW, STATUTE, REGULATION, CUSTOM, OR
PRACTICE:

(1) WOULD IMPAIR THE CREATION, ATTACHMENT, OR PERFECTION OF A
SECURITY INTEREST IN THE LETTER-OF-CREDIT RIGHT; OR

(2) PROVIDES THAT THE CREATION, ATTACHMENT, OR PERFECTION OF
THE SECURITY INTEREST MAY GIVE RISE TO A DEFAULT, BREACH, RIGHT OF
RECOUPMENT, CLAIM, DEFENSE, TERMINATION, RIGHT OF TERMINATION, OR
REMEDY UNDER THE LETTER-OF-CREDIT RIGHT.

(B) TO THE EXTENT THAT A TERM IN A LETTER OF CREDIT IS INEFFECTIVE
UNDER SUBSECTION (A) BUT WOULD BE EFFECTIVE UNDER LAW OTHER THAN THIS
TITLE OR A CUSTOM OR PRACTICE APPLICABLE TO THE LETTER OF CREDIT, TO THE
TRANSFER OF A RIGHT TO DRAW OR OTHERWISE DEMAND PERFORMANCE UNDER
THE LETTER OF CREDIT, OR TO THE ASSIGNMENT OF A RIGHT TO PROCEEDS OF THE
LETTER OF CREDIT, THE CREATION, ATTACHMENT, OR PERFECTION OF A SECURITY
INTEREST IN THE LETTER-OF-CREDIT RIGHT:

(1) IS NOT ENFORCEABLE AGAINST THE APPLICANT, ISSUER,
NOMINATED PERSON, OR TRANSFEREE BENEFICIARY;

(2) IMPOSES NO DUTIES OR OBLIGATIONS ON THE APPLICANT, ISSUER,
NOMINATED PERSON, OR TRANSFEREE BENEFICIARY; AND

(3) DOES NOT REQUIRE THE APPLICANT, ISSUER, NOMINATED PERSON,
OR TRANSFEREE BENEFICIARY TO RECOGNIZE THE SECURITY INTEREST, PAY OR
RENDER PERFORMANCE TO THE SECURED PARTY, OR ACCEPT PAYMENT OR OTHER
PERFORMANCE FROM THE SECURED PARTY.

SUBTITLE 5. FILING.

9-501. FILING OFFICE.

(A) EXCEPT AS OTHERWISE PROVIDED IN SUBSECTION (B), IF THE LOCAL LAW
OF THIS STATE GOVERNS PERFECTION OF A SECURITY INTEREST OR AGRICULTURAL
LIEN, THE OFFICE IN WHICH TO FILE A FINANCING STATEMENT TO PERFECT THE
SECURITY INTEREST OR AGRICULTURAL LIEN IS:

(1) THE OFFICE DESIGNATED FOR THE FILING OR RECORDING OF A
RECORD OF A MORTGAGE ON THE RELATED REAL PROPERTY, IF: