---
kind: "section"
citation: "12 C.F.R. § 1270.13"
title: "12"
number: "1270.13"
heading: "Law governing other interests."
url: "https://uscodex.org/cfr/12/1270.13"
---

# §1270.13. Law governing other interests.

- (a) To the extent not inconsistent with this part 1270, the law (not including the conflict-of-law rules) of a Securities Intermediary's jurisdiction governs:
  - (1) The acquisition of a Security Entitlement from the Securities Intermediary;
  - (2) The rights and duties of the Securities Intermediary and Entitlement Holder arising out of a Security Entitlement;
  - (3) Whether the Securities Intermediary owes any duties to an adverse claimant to a Security Entitlement;
  - (4) Whether an Adverse Claim can be asserted against a Person who acquires a Security Entitlement from the Securities Intermediary or a Person who purchases a Security Entitlement or interest therein from an Entitlement Holder; and
  - (5) Except as otherwise provided in [paragraph (c)](#c) of this section, the perfection, effect of perfection or non-perfection, and priority of a security interest in a Security Entitlement.
- (b) **The following rules determine a “Securities Intermediary's jurisdiction” for purposes of this section—**
  - (1) If an agreement between the Securities Intermediary and its Entitlement Holder specifies that it is governed by the law of a particular jurisdiction, that jurisdiction is the Securities Intermediary's jurisdiction.
  - (2) If an agreement between the Securities Intermediary and its Entitlement Holder does not specify the governing law as provided in [paragraph (b)(1)](#b-1) of this section, but expressly specifies that the securities account is maintained at an office in a particular jurisdiction, that jurisdiction is the Securities Intermediary's jurisdiction.
  - (3) If an agreement between the Securities Intermediary and its Entitlement Holder does not specify a jurisdiction as provided in paragraphs [(b)(1)](#b-1) or [(b)(2)](#b-2) of this section, the Securities Intermediary's jurisdiction is the jurisdiction in which is located the office identified in an account statement as the office serving the Entitlement Holder's account.
  - (4) If an agreement between the Securities Intermediary and its Entitlement Holder does not specify a jurisdiction as provided in paragraphs [(b)(1)](#b-1) or [(b)(2)](#b-2) of this section and an account statement does not identify an office serving the Entitlement Holder's account as provided in [paragraph (b)(3)](#b-3) of this section, the Securities Intermediary's jurisdiction is the jurisdiction in which is located the chief executive office of the Securities Intermediary.
- (c) Notwithstanding the general rule in [paragraph (a)(5)](#a-5) of this section, the law (but not the conflict-of-law rules) of the jurisdiction in which the Person creating a security interest is located governs whether and how the security interest may be perfected automatically or by filing a financing statement.
- (d) If the jurisdiction specified in [paragraph (b)](#b) of this section is a State that has not adopted Revised Article 8, then the law for the matters specified in [paragraph (a)](#a) of this section shall be the law of that State as though Revised Article 8 had been adopted by that State. For purposes of the application of the matters specified in [paragraph (a)](#a) of this section, the Federal Reserve Bank maintaining the Securities Account is a clearing corporation, and the Participant's interest in a Bank Book-entry Security is a Security Entitlement.

## Notes

### Authority

Authority: 12 U.S.C. 1431, 1432, 1435, 4511, 4512, 4513, and 4526.

### Source

Source: 76 FR 18369, Apr. 4, 2011, unless otherwise noted.