Law governing perfection and priority of security interests in controllable accounts, controllable electronic records, and controllable payment intangibles. [Effective September 1, 2026.]

(a) Except as provided in subsection (b), the local law of the controllable electronic record’s jurisdiction specified in § 4-12-107(c) and (d) 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:(1) perfection of a security interest in a controllable account, controllable electronic record, or controllable payment intangible by filing; and(2) automatic perfection of a security interest in a controllable payment intangible created by a sale of the controllable payment intangible.

(1) perfection of a security interest in a controllable account, controllable electronic record, or controllable payment intangible by filing; and

(2) automatic perfection of a security interest in a controllable payment intangible created by a sale of the controllable payment intangible.