Which law governs perfection for non-land-related collateral?

The law governing the perfection of security interests in non-land-related collateral is indeed the law of the jurisdiction where the debtor is located. This principle is grounded in the Uniform Commercial Code (UCC), specifically Article 9, which regulates secured transactions.

The rationale behind this is to provide clarity and consistency in the perfection process. Perfection is often necessary to establish the priority of a security interest in the event of debtor default or bankruptcy. Since the debtor’s location is a critical factor in determining the applicability of the law, it ensures that there is a clear legal framework to follow, regardless of where the collateral is physically located.

This rule helps avoid conflict and confusion that could arise from differing state laws and assures that all parties understand which legal standards apply. By adhering to the law of the jurisdiction where the debtor resides, all stakeholders can ascertain the legal requirements for perfection, including filing requirements and allowable forms of security interests.