Arizona Laws 47-9305. Law governing perfection and priority of security interests in investment property
A. Except as otherwise provided in subsection C of this section, the following rules apply:
Terms Used In Arizona Laws 47-9305
- Commodity account: means an account maintained by a commodity intermediary in which a commodity contract is carried for a commodity customer. See Arizona Laws 47-9102
- Commodity contract: means a commodity futures contract, an option on a commodity futures contract, a commodity option or another contract if the contract or option is:
(a) Traded on or subject to the rules of a board of trade that has been designated as a contract market for such a contract pursuant to federal commodities laws; or
(b) Traded on a foreign commodity board of trade, exchange or market, and is carried on the books of a commodity intermediary for a commodity customer. See Arizona Laws 47-9102
- Commodity customer: means a person for which a commodity intermediary carries a commodity contract on its books. See Arizona Laws 47-9102
- Commodity intermediary: means a person that:
(a) Is registered as a futures commission merchant under federal commodities law; or
(b) In the ordinary course of its business provides clearance or settlement services for a board of trade that has been designated as a contract market pursuant to federal commodities law. See Arizona Laws 47-9102
- Contract: A legal written agreement that becomes binding when signed.
- Debtor: means :
(a) A person having an interest, other than a security interest or other lien, in the collateral, whether or not the person is an obligor;
(b) A seller of accounts, chattel paper, payment intangibles or promissory notes; or
(c) A consignee. See Arizona Laws 47-9102
- Entitlement: A Federal program or provision of law that requires payments to any person or unit of government that meets the eligibility criteria established by law. Entitlements constitute a binding obligation on the part of the Federal Government, and eligible recipients have legal recourse if the obligation is not fulfilled. Social Security and veterans' compensation and pensions are examples of entitlement programs.
- Investment property: means a security, whether certificated or uncertificated, security entitlement, securities account, commodity contract or commodity account. See Arizona Laws 47-9102
- Jurisdiction: (1) The legal authority of a court to hear and decide a case. Concurrent jurisdiction exists when two courts have simultaneous responsibility for the same case. (2) The geographic area over which the court has authority to decide cases.
- Property: includes both real and personal property. See Arizona Laws 1-215
1. While a security certificate 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 the certificated security represented thereby.
2. The local law of the issuer’s jurisdiction as specified in section 47-8110, subsection D governs perfection, the effect of perfection or nonperfection and the priority of a security interest in an uncertificated security.
3. The local law of the securities intermediary’s jurisdiction as specified in section 47-8110, subsection E governs perfection, the effect of perfection or nonperfection and the priority of a security interest in a security entitlement or securities account.
4. The local law of the commodity intermediary‘s jurisdiction governs perfection, the effect of perfection or nonperfection and the priority of a security interest in a commodity contract or commodity account.
B. The following rules determine a commodity intermediary’s jurisdiction for purposes of this article:
1. If an agreement between the commodity intermediary and commodity customer governing the commodity account expressly provides that a particular jurisdiction is the commodity intermediary’s jurisdiction for purposes of this article, this chapter or this title, that jurisdiction is the commodity intermediary’s jurisdiction.
2. If paragraph 1 of this subsection does not apply and an agreement between the commodity intermediary and commodity customer governing the commodity account expressly provides that the agreement is governed by the law of a particular jurisdiction, that jurisdiction is the commodity intermediary’s jurisdiction.
3. If neither paragraph 1 nor paragraph 2 of this subsection applies and an agreement between the commodity intermediary and commodity customer governing the commodity account expressly provides that the commodity account is maintained at an office in a particular jurisdiction, that jurisdiction is the commodity intermediary’s jurisdiction.
4. If none of the preceding paragraphs applies, the commodity intermediary’s jurisdiction is the jurisdiction in which the office identified in an account statement as the office serving the commodity customer’s account is located.
5. If none of the preceding paragraphs applies, the commodity intermediary’s jurisdiction is the jurisdiction in which the chief executive office of the commodity intermediary is located.
C. The local law of the jurisdiction in which the debtor is located governs:
1. Perfection of a security interest in investment property by filing;
2. Automatic perfection of a security interest in investment property created by a broker or securities intermediary; and
3. Automatic perfection of a security interest in a commodity contract or commodity account created by a commodity intermediary.