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Texas Business & Commerce Code - Section 9.301. Law Governing Perfection And Priority Of Security Interests

Legal Research Home > Texas Laws > Business & Commerce Code > Texas Business & Commerce Code - Section 9.301. Law Governing Perfection And Priority Of Security Interests

§ 9.301. LAW GOVERNING PERFECTION AND PRIORITY OF 
SECURITY INTERESTS.  Except as otherwise provided in Sections 
9.303 through 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 Subdivision (4), 
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.

Amended by Acts 1999, 76th Leg., ch. 414, § 1.01, eff. July 1, 
2001;  Acts 2005, 79th Leg., ch. 122, § 23, eff. Sept. 1, 2005.

Last modified: August 11, 2007