The Oklahoma Bar Journal January 2023

a controllable payment intangible. Amended Section 9-310 pro vides conforming changes as to terminology or section references. Amended Section 9-312 provides conforming changes as to terminol ogy or section references. Subsection 9-312(a)(4) provides that a security interest in electronic money may be perfected only by control. Amended Section 9-313 provides conforming changes as to terminology or section references. Amended Section 9-314 pro vides conforming changes as to terminology or section references. The official com ments provide an expanded discussion of the concept of shared control of certain controllable records. provides that perfection by possession and control of chattel paper occurs once a secured party takes posses sion of each authoritative tangible and electronic copy of the record. Ongoing pos session and control of the chattel paper is required to maintain perfection. When showing possession and attempting to prove what copies are “authoritative,” the official comments provide that parties should be afforded considerable flexibility in outlining the procedures for determining what versions of records are “authoritative.” Amended Section 9-316 pro vides conforming changes as to terminology or section references. A new Section 9-314A

b. If the chattel paper is recorded, the state’s law where it is recorded will govern; c. Any choice of law chattel paper will govern, and such state’s law will gov ern; and d. If no choice of law provision is pro vided, the laws of the jurisdiction provision in records associated with the where the debtor is located will govern. 3) If chattel paper is only evidenced by a tangible authoritative record, the law of the jurisdiction where the chattel paper the above provisions governing perfection by possession, the local law of the jurisdiction where the debtor is located governs per fection of a security interest in chattel paper by filing. A new Section 9-306B pro vides that the law govern ing priority and perfection of controllable accounts, controllable electronic records and controllable payment intangibles is determined by Article 12 Subsections 12-107(c) and (d); however, the law where the debtor is located will govern perfection in such items of collateral by filing and in cases of automatic perfection where a control lable payment intangible is created by the sale of is located governs for perfection and priority. 4) Notwithstanding

Amended Section 9-301 pro vides conforming changes as to terminology or section references. This amendment specifies that the law of the jurisdiction, in which tangible documents, goods, instruments or tangible money is located, will deter mine the law governing the perfection of security inter ests in such collateral. Amended Section 9-304 clarifies that the local law of a bank’s jurisdiction governs the perfection of a security interest in deposit accounts “even if a transaction does not bear any relation to the bank’s jurisdiction.” Amended Section 9-305 provides that the local law of issuers, security intermediar ies and commodity interme diaries govern issues related to perfection “even if a trans action does not bear any relation to that jurisdiction.” A new Section 9-306A pro vides the following amend ments regarding choice of law: 1) Perfection or nonperfec by an electronic copy are to be governed by the jurisdiction of the chattel paper itself. 2) The “jurisdiction of the tion and priority as to chattel paper evidenced

chattel paper” is deter mined by applying a “waterfall” provision that determines juris diction as follows: a. Any choice of law

provision in the chattel paper is given first consid eration for deter mining which law governs;

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THE OKLAHOMA BAR JOURNAL