(810 ILCS 5/9-306) (from Ch. 26, par. 9-306)
Sec. 9-306.
Law governing perfection and priority of security interests
in letter-of-credit rights.
(a) Governing law: issuer's or nominated person's jurisdiction.
Subject to subsection (c), the local law of the issuer's jurisdiction or a
nominated
person'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's
jurisdiction or nominated person's jurisdiction is a State.
(b) Issuer's or nominated person's jurisdiction. For purposes of
this Part, an issuer's jurisdiction or nominated person'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 Section 5-116.
(c) When Section not applicable. This Section does not apply to a
security interest that is perfected only under Section 9-308(d).
(Source: P.A. 91-893, eff. 7-1-01.)
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