8.9A-304 - A-304. Law governing perfection and priority of security interests in deposit accounts. - Virginia Statutes

§ 8.9A-304. Law governing perfection and priority of security interests indeposit accounts.

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

(b) Bank's jurisdiction. The following rules determine a bank's jurisdictionfor purposes of this part:

(1) If an agreement between the bank and the debtor governing the depositaccount expressly provides that a particular jurisdiction is the bank'sjurisdiction for purposes of this part, this title, or the Uniform CommercialCode, that jurisdiction is the bank's jurisdiction.

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

(3) If neither paragraph (1) nor paragraph (2) 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 of the preceding paragraphs applies, the bank's jurisdiction isthe jurisdiction in which the office identified in an account statement asthe office serving the customer's account is located.

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

(2000, c. 1007.)