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(810 ILCS 5/9-305) (from Ch. 26, par. 9-305) (Text of Section before amendment by P.A. 103-1036) Sec. 9-305. Law governing perfection and priority of security interests
in investment property. (a) Governing law: general rules. Except as otherwise provided
in subsection (c), the following rules apply: (1) While a security certificate 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 the certificated security represented thereby.
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(2) The local law of the issuer's jurisdiction as
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| specified in Section 8-110(d) governs perfection, the effect of perfection or nonperfection, and the priority of a security interest in an uncertificated security.
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(3) The local law of the securities intermediary's
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| jurisdiction as specified in Section 8-110(e) governs perfection, the effect of perfection or nonperfection, and the priority of a security interest in a security entitlement or securities account.
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(4) The local law of the commodity intermediary's
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| jurisdiction governs perfection, the effect of perfection or nonperfection, and the priority of a security interest in a commodity contract or commodity account.
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(b) Commodity intermediary's jurisdiction. The following rules
determine a commodity intermediary's jurisdiction for purposes of this Part:
(1) If an agreement between the commodity
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| intermediary and commodity customer governing the commodity account expressly provides that a particular jurisdiction is the commodity intermediary's jurisdiction for purposes of this Part, this Article, or the Uniform Commercial Code, that jurisdiction is the commodity intermediary's jurisdiction.
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(2) If paragraph (1) does not apply and an agreement
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| between the commodity intermediary and commodity customer governing the commodity account expressly provides that the agreement is governed by the law of a particular jurisdiction, that jurisdiction is the commodity intermediary's jurisdiction.
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(3) If neither paragraph (1) nor paragraph (2)
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| applies and an agreement between the commodity intermediary and commodity customer governing the commodity account expressly provides that the commodity account is maintained at an office in a particular jurisdiction, that jurisdiction is the commodity intermediary's jurisdiction.
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(4) If none of the preceding paragraphs applies, the
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| commodity intermediary's jurisdiction is the jurisdiction in which the office identified in an account statement as the office serving the commodity customer's account is located.
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(5) If none of the preceding paragraphs applies, the
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| commodity intermediary's jurisdiction is the jurisdiction in which the chief executive office of the commodity intermediary is located.
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(c) 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 investment
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(2) automatic perfection of a security interest in
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| investment property created by a broker or securities intermediary; and
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(3) automatic perfection of a security interest in a
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| commodity contract or commodity account created by a commodity intermediary.
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(Source: P.A. 91-893, eff. 7-1-01.)
(Text of Section after amendment by P.A. 103-1036)
Sec. 9-305. Law governing perfection and priority of security interests in investment property.
(a) Governing law: general rules. Except as otherwise provided in subsection (c), the following rules apply:
(1) While a security certificate 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 the certificated security represented thereby.
|
|
(2) The local law of the issuer's jurisdiction as
|
| specified in Section 8-110(d) governs perfection, the effect of perfection or nonperfection, and the priority of a security interest in an uncertificated security.
|
|
(3) The local law of the securities intermediary's
|
| jurisdiction as specified in Section 8-110(e) governs perfection, the effect of perfection or nonperfection, and the priority of a security interest in a security entitlement or securities account.
|
|
(4) The local law of the commodity intermediary's
|
| jurisdiction governs perfection, the effect of perfection or nonperfection, and the priority of a security interest in a commodity contract or commodity account.
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(5) Paragraphs (2), (3), and (4) apply even if the
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| transaction does not bear any relation to the jurisdiction.
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(b) Commodity intermediary's jurisdiction. The following rules determine a commodity intermediary's jurisdiction for purposes of this Part:
(1) If an agreement between the commodity
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| intermediary and commodity customer governing the commodity account expressly provides that a particular jurisdiction is the commodity intermediary's jurisdiction for purposes of this Part, this Article, or the Uniform Commercial Code, that jurisdiction is the commodity intermediary's jurisdiction.
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|
(2) If paragraph (1) does not apply and an agreement
|
| between the commodity intermediary and commodity customer governing the commodity account expressly provides that the agreement is governed by the law of a particular jurisdiction, that jurisdiction is the commodity intermediary's jurisdiction.
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(3) If neither paragraph (1) nor paragraph (2)
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| applies and an agreement between the commodity intermediary and commodity customer governing the commodity account expressly provides that the commodity account is maintained at an office in a particular jurisdiction, that jurisdiction is the commodity intermediary's jurisdiction.
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(4) If none of the preceding paragraphs applies, the
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| commodity intermediary's jurisdiction is the jurisdiction in which the office identified in an account statement as the office serving the commodity customer's account is located.
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(5) If none of the preceding paragraphs applies, the
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| commodity intermediary's jurisdiction is the jurisdiction in which the chief executive office of the commodity intermediary is located.
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(c) 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 investment
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(2) automatic perfection of a security interest in
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| investment property created by a broker or securities intermediary; and
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(3) automatic perfection of a security interest in a
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| commodity contract or commodity account created by a commodity intermediary.
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(Source: P.A. 103-1036, eff. 1-1-25.)
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