California Commercial Code 9306.2 – (a) Except as provided in subdivision (b), the local law of the …
(a) Except as provided in subdivision (b), the local law of the controllable electronic record‘s jurisdiction specified in subdivisions (c) and (d) of Section 12107 governs perfection, the effect of perfection or nonperfection, and the priority of a security interest in a controllable electronic record and a security interest in a controllable account or controllable payment intangible evidenced by the controllable electronic record.
(b) The local law of the jurisdiction in which the debtor is located governs both of the following:
Terms Used In California Commercial Code 9306.2
- Electronic: means relating to technology having electrical, digital, magnetic, wireless, optical, electromagnetic, or similar capabilities. See California Commercial Code 1201
- 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.
- Record: means information that is inscribed on a tangible medium or that is stored in an electronic or other medium and is retrievable in perceivable form. See California Commercial Code 1201
- Security interest: includes any interest of a consignor and a buyer of accounts, chattel paper, a payment intangible, or a promissory note in a transaction that is subject to Division 9 (commencing with Section 9101). See California Commercial Code 1201
(1) Perfection of a security interest in a controllable account, controllable electronic record, or controllable payment intangible by filing.
(2) Automatic perfection of a security interest in a controllable payment intangible created by a sale of the controllable payment intangible.
(Added by Stats. 2023, Ch. 210, Sec. 40. (SB 95) Effective January 1, 2024.)