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

Except as otherwise provided in G.S. 25-9-303 through G.S. 25-9-306, the following rules determine the law governing perfection, the effect of perfection or nonperfection, and the priority of a security interest in collateral:

(1)        Except as otherwise provided in this section, while a debtor is located in a jurisdiction, the local law of that jurisdiction governs perfection, the effect of perfection or nonperfection, and the priority of a security interest in collateral.

(2)        While collateral is located in a jurisdiction, the local law of that jurisdiction governs perfection, the effect of perfection or nonperfection, and the priority of a possessory security interest in that collateral.

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

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

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

c.         The effect of perfection or nonperfection and the priority of a nonpossessory security interest in the collateral.

(4)        The local law of the jurisdiction in which the wellhead or minehead is located governs perfection, the effect of perfection or nonperfection, and the priority of a security interest 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.)

Sections:  Previous  25-9-204  25-9-205  25-9-206  25-9-207  25-9-208  25-9-209  25-9-210  25-9-301  25-9-302  25-9-303  25-9-304  25-9-305  25-9-306  25-9-307  25-9-308  Next

Last modified: March 23, 2014