The following rules govern priority among conflicting security interests in the same letter-of-credit right:

(1) A security interest held by a secured party having control of the letter-of-credit right under N.C. Gen. Stat. § 25-9-107 has priority to the extent of its control over a conflicting security interest held by a secured party that does not have control.

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Terms Used In North Carolina General Statutes 25-9-329

  • following: when used by way of reference to any section of a statute, shall be construed to mean the section next preceding or next following that in which such reference is made; unless when some other section is expressly designated in such reference. See North Carolina General Statutes 12-3

(2) Security interests perfected by control under N.C. Gen. Stat. § 25-9-314 rank according to priority in time of obtaining control. (1997-181, s. 5; 2000-169, s. 1.)