400.9-304. Law governing perfection and priority of security interests in deposit accounts. - Missouri Statutes

Law governing perfection and priority of security interests indeposit accounts.

400.9-304. (a) The local law of a bank's jurisdiction governsperfection, the effect of perfection or nonperfection, and the priority ofa security interest in a deposit account maintained with that bank.

(b) The following rules determine a bank's jurisdiction for purposesof this part:

(1) If an agreement between the bank and the debtor governing thedeposit account expressly provides that a particular jurisdiction is thebank's jurisdiction for purposes of this part, this article, or thischapter, that jurisdiction is the bank's jurisdiction;

(2) If paragraph (1) does not apply and an agreement between the bankand its customer governing the deposit account expressly provides that theagreement is governed by the law of a particular jurisdiction, thatjurisdiction is the bank's jurisdiction;

(3) If neither paragraph (1) nor paragraph (2) applies and anagreement between the bank and its customer governing the deposit accountexpressly provides that the deposit account is maintained at an office in aparticular jurisdiction, that jurisdiction is the bank's jurisdiction;

(4) If none of the preceding paragraphs applies, the bank'sjurisdiction is the jurisdiction in which the office identified in anaccount statement as the office serving the customer's account is located;

(5) If none of the preceding paragraphs applies, the bank'sjurisdiction is the jurisdiction in which the chief executive office of thebank is located.

(L. 1963 p. 503 § 9-304, A.L. 1988 S.B. 583, A.L. 1992 S.B. 448, A.L. 1997 S.B. 6, A.L. 2001 S.B. 288)

Effective 7-01-01