§ 25-9-304. Law governing perfection and priority of security interests in deposit accounts. - North Carolina Statutes

§25‑9‑304.  Law governing perfection and priority of securityinterests in deposit accounts.

(a)        Law of bank'sjurisdiction governs. – The local law of a bank's jurisdiction governsperfection, the effect of perfection or nonperfection, and the priority of asecurity interest in a deposit account maintained with that bank.

(b)        Bank'sjurisdiction. – The following rules determine a bank's jurisdiction forpurposes of this Part:

(1)        If an agreementbetween the bank and the debtor governing the deposit account expresslyprovides that a particular jurisdiction is the bank's jurisdiction for purposesof this Part, this Article, or this Chapter, that jurisdiction is the bank'sjurisdiction.

(2)        If subdivision (1)of this subsection does not apply and an agreement between the bank and itscustomer governing the deposit account expressly provides that the agreement isgoverned by the law of a particular jurisdiction, that jurisdiction is thebank's jurisdiction.

(3)        If neithersubdivision (1) nor subdivision (2) of this subsection applies and an agreementbetween the bank and its customer governing the deposit account expresslyprovides that the deposit account is maintained at an office in a particularjurisdiction, that jurisdiction is the bank's jurisdiction.

(4)        If none ofsubdivisions (1), (2), and (3) of this subsection applies, the bank'sjurisdiction is the jurisdiction in which the office identified in an accountstatement as the office serving the customer's account is located.

(5)        If none ofsubdivisions (1), (2), (3), and (4) of this subsection applies, the bank'sjurisdiction is the jurisdiction in which the chief executive office of thebank is located. (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.)