Cite as: 80 CNCA § 9-329

Priority of Security Interests in Letter-of-Credit Right

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 80 CNCA § 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.

(2) Security interests perfected by control under 80 CNCA § 9–314 rank according to priority in time of obtaining control.

Historical Data

LA 26–03, eff. October 2, 2003.