Colorado Code
Part 3 - Perfection and Priority
§ 4-9-306. Law Governing Perfection and Priority of Security Interests in Letter-of-Credit Rights




Source: L. 2001: Entire article R&RE, p. 1344, § 1, effective July 1.





Example: An Italian bank issues a letter of credit that is confirmed by a New York bank. The beneficiary is a Connecticut corporation. The letter of credit provides that the issuer's liability is governed by Italian law, and the confirmation provides that the confirmer's liability is governed by the law of New York. Under Sections 9-306(b) and 5-116(a), Italy is the issuer's jurisdiction and New York is the confirmer's (nominated person's) jurisdiction. Because the confirmer's jurisdiction is a State, the law of New York governs perfection and priority of a security interest in the beneficiary's letter-of-credit right against the confirmer. See Section 9-306(a). However, because the issuer's jurisdiction is not a State, the law of that jurisdiction does not govern. See Section 9-306(a). Rather, the choice-of-law rule in Section 9-301(1) applies to perfection and priority of a security interest in the beneficiary's letter-of-credit right against the issuer. Under that section, perfection and priority are governed by the law of the jurisdiction in which the debtor (beneficiary) is located. That jurisdiction is Connecticut. See Section 9-307.

Structure Colorado Code

Colorado Code

Title 4 - Uniform Commercial Code

Article 9 - Secured Transactions

Part 3 - Perfection and Priority

§ 4-9-301. Law Governing Perfection and Priority of Security Interests

§ 4-9-302. Law Governing Perfection and Priority of Agricultural Liens

§ 4-9-303. Law Governing Perfection and Priority of Security Interests in Goods Covered by a Certificate of Title

§ 4-9-304. Law Governing Perfection and Priority of Security Interests in Deposit Accounts

§ 4-9-305. Law Governing Perfection and Priority of Security Interests in Investment Property

§ 4-9-306. Law Governing Perfection and Priority of Security Interests in Letter-of-Credit Rights

§ 4-9-307. Location of Debtor

§ 4-9-308. When Security Interest or Agricultural Lien Is Perfected - Continuity of Perfection

§ 4-9-309. Security Interest Perfected Upon Attachment

§ 4-9-310. When Filing Required to Perfect Security Interest or Agricultural Lien - Security Interests and Agricultural Liens to Which Filing Provisions Do Not Apply

§ 4-9-311. Perfection of Security Interests in Property Subject to Certain Statutes, Regulations, and Treaties

§ 4-9-312. Perfection of Security Interests in Chattel Paper, Deposit Accounts, Documents, Goods Covered by Documents, Instruments, Investment Property, Letter-of-Credit Rights, and Money - Perfection by Permissive Filing - Temporary Perfection Witho...

§ 4-9-313. When Possession by or Delivery to Secured Party Perfects Security Interest Without Filing

§ 4-9-314. Perfection by Control

§ 4-9-315. Secured Party's Rights on Disposition of Collateral and in Proceeds

§ 4-9-316. Effect of Change in Governing Law

§ 4-9-317. Interests That Take Priority Over or Take Free of Security Interest or Agricultural Lien

§ 4-9-318. No Interest Retained in Right to Payment That Is Sold - Rights and Title of Seller of Account or Chattel Paper With Respect to Creditors and Purchasers

§ 4-9-319. Rights and Title of Consignee With Respect to Creditors and Purchasers

§ 4-9-320. Buyer of Goods

§ 4-9-321. Licensee of General Intangible and Lessee of Goods in Ordinary Course of Business

§ 4-9-322. Priorities Among Conflicting Security Interests in and Agricultural Liens on Same Collateral

§ 4-9-323. Future Advances

§ 4-9-324. Priority of Purchase-Money Security Interests

§ 4-9-325. Priority of Security Interests in Transferred Collateral

§ 4-9-326. Priority of Security Interests Created by New Debtor

§ 4-9-327. Priority of Security Interests in Deposit Account

§ 4-9-328. Priority of Security Interests in Investment Property

§ 4-9-329. Priority of Security Interests in Letter-of-Credit Right

§ 4-9-330. Priority of Purchaser of Chattel Paper or Instrument

§ 4-9-331. Priority of Rights of Purchasers of Instruments, Documents, and Securities Under Other Articles - Priority of Interests in Financial Assets and Security Entitlements Under Article 8

§ 4-9-332. Transfer of Money - Transfer of Funds From Deposit Account

§ 4-9-333. Priority of Certain Liens Arising by Operation of Law

§ 4-9-334. Priority of Security Interests in Fixtures and Crops

§ 4-9-335. Accessions

§ 4-9-336. Commingled Goods

§ 4-9-337. Priority of Security Interests in Goods Covered by Certificate of Title

§ 4-9-338. Priority of Security Interest or Agricultural Lien Perfected by Filed Financing Statement Providing Certain Incorrect Information

§ 4-9-339. Priority Subject to Subordination

§ 4-9-340. Effectiveness of Right of Recoupment or Set-Off Against Deposit Account

§ 4-9-341. Bank's Rights and Duties With Respect to Deposit Account

§ 4-9-342. Bank's Right to Refuse to Enter Into or Disclose Existence of Control Agreement