§ 25-9-301. Law governing perfection and priority of security interests. - North Carolina Statutes

PART 3.

PERFECTION AND PRIORITY.

SUBPART 1. Law GoverningPerfection and Priority.

§ 25‑9‑301.  Lawgoverning perfection and priority of security interests.

Except as otherwise providedin G.S. 25‑9‑303 through G.S. 25‑9‑306, the followingrules determine the law governing perfection, the effect of perfection ornonperfection, and the priority of a security interest in collateral:

(1)        Except as otherwiseprovided in this section, while a debtor is located in a jurisdiction, thelocal law of that jurisdiction governs perfection, the effect of perfection ornonperfection, and the priority of a security interest in collateral.

(2)        While collateral islocated in a jurisdiction, the local law of that jurisdiction governsperfection, the effect of perfection or nonperfection, and the priority of apossessory security interest in that collateral.

(3)        Except as otherwiseprovided in paragraph (4) of this section, while tangible negotiable documents,goods, instruments, money, or tangible chattel paper is located in ajurisdiction, the local law of that jurisdiction governs:

a.         Perfection of asecurity interest in the goods by filing a fixture filing;

b.         Perfection of asecurity interest in timber to be cut; and

c.         The effect ofperfection or nonperfection and the priority of a nonpossessory securityinterest in the collateral.

(4)        The local law of thejurisdiction in which the wellhead or minehead is located governs perfection,the effect of perfection or nonperfection, and the priority of a securityinterest in as‑extracted collateral. (1945, c. 196, s. 2; 1957, c. 564; 1965, c. 700, s. 1;1967, c. 562, s. 1; 1975, c. 862, s. 7; 1989 (Reg. Sess., 1990), c. 1024, s.8(e), (f); 1997‑181, s. 2; 1999‑73, s. 4(a), (b); 2000‑169,s. 1; 2006‑112, s. 48.)