H.B. 140                                                 VETOES

commodity intermediary from any further obligation to comply with entitlement
orders or directions originated by the secured party; [and]

(5)     A secured party having control of a letter-of-credit right under §
9-107 shall send to each person having an unfulfilled obligation to pay or deliver
proceeds of the letter of credit to the secured party an authenticated release from any
further obligation to pay or deliver proceeds of the letter of credit to the secured party;
AND

(6)      A SECURED PARTY HAVING CONTROL OF AN ELECTRONIC
DOCUMENT SHALL: .

(A)     GIVE CONTROL OF THE ELECTRONIC DOCUMENT TO THE
DEBTOR OR ITS DESIGNATED CUSTODIAN;

(B)     IF THE DEBTOR DESIGNATES A CUSTODIAN THAT IS THE
DESIGNATED CUSTODIAN WITH WHICH THE AUTHORITATIVE COPY OF THE
ELECTRONIC DOCUMENT IS MAINTAINED FOR THE SECURED PARTY, COMMUNICATE
TO THE CUSTODIAN AN AUTHENTICATED RECORD RELEASING THE DESIGNATED
CUSTODIAN FROM ANY FURTHER OBLIGATION TO COMPLY WITH INSTRUCTIONS
ORIGINATED BY THE SECURED PARTY AND INSTRUCTING THE CUSTODIAN TO
COMPLY WITH INSTRUCTIONS ORIGINATED BY THE DEBTOR; AND

(C)     TAKE APPROPRIATE ACTION TO ENABLE THE DEBTOR OR ITS
DESIGNATED CUSTODIAN TO MAKE COPIES OF OR REVISIONS TO THE
AUTHORITATIVE COPY WHICH ADD OR CHANGE AN IDENTIFIED ASSIGNEE OF THE
AUTHORITATIVE COPY WITHOUT THE CONSENT OF THE SECURED PARTY.

9-301.

Except as otherwise provided in §§ 9-303 through 9-306, the following rules
determine the law governing perfection, the effect of perfection or nonperfection, and
the priority of a security interest in collateral:

(1)     Except as otherwise provided in this section, while a debtor is located
in a jurisdiction, the local law of that jurisdiction governs perfection, the effect of
perfection or nonperfection, and the priority of a security interest in collateral.

(2)     While collateral is located in a jurisdiction, the local law of that
jurisdiction governs perfection, the effect of perfection or nonperfection, and the
priority of a possessory security interest in that collateral.

(3)     Except as otherwise provided in paragraph (4), while TANGIBLE
negotiable documents, goods, instruments, money, or tangible chattel paper is located
in a jurisdiction, the local law of that jurisdiction governs:

(A)     Perfection of a security interest in the goods by filing a fixture
filing;

(B)    Perfection of a security interest in timber to be cut; and

(C)    The effect of perfection or nonperfection and the priority of a
nonpossessory security interest in the collateral.

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