(9-306) Law governing perfection and priority of security interests in letter-of-credit rights
N.D. Cent. Code § 41-09-26
in effect41-09-26. (9-306) Law governing perfection and priority of security interests in
letter-of-credit rights.
1. Subject to subsection 3, 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.
2. 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 41-05-16.
3. This section does not apply to a security interest that is perfected only under
subsection 4 of section 41-09-28.
Source: Open US Law by Vaquill AI (CC BY 4.0)URL: https://ndlegis.gov/cencode/t41c09.pdf#nameddest=41-09-26Fetched: 10/16/2026