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 § 36-9-107 has priority to the extent of its control over a conflicting security interest held by a secured party that does not have control.

Ask a business law question, get an answer ASAP!
Thousands of highly rated, verified business lawyers.
Click here to chat with a lawyer about your rights.

(2) Security interests perfected by control under § 36-9-314 rank according to priority in time of obtaining control.