Section 9--306. Law Governing Perfection and Priority of Security

Interests in Letter-of-credit Rights.

(a) Governing law: issuer's or nominated person's jurisdiction.
Subject to subsection (c), the local law of the issuer's jurisdiction or
a nominated person's jurisdiction governs perfection, the effect of
perfection or nonperfection, and the priority of a security interest in
a letter-of-credit right if the issuer's jurisdiction or nominated
person's jurisdiction is a state.

(b) Issuer's or nominated person's jurisdiction. For purposes of this
part, an issuer's jurisdiction or nominated person's jurisdiction is the
jurisdiction whose law governs the liability of the issuer or nominated
person with respect to the letter-of-credit right as provided in Section
5--116.

(c) When section not applicable. This section does not apply to a
security interest that is perfected only under Section 9--308(d).