N.Y. Uniform Commercial Code Law Section 9-304
Law Governing Perfection and Priority of Security Interests in Deposit Accounts

Section 9--304. Law Governing Perfection and Priority of Security Interests in Deposit Accounts. * (a) Law of bank’s jurisdiction governs. The local law of a bank’s jurisdiction governs perfection, the effect of perfection or nonperfection, and the priority of a security interest in a deposit account maintained with that bank. * NB Effective until June 3, 2026 * (a) Law of bank’s jurisdiction governs. The local law of a bank’s jurisdiction governs perfection, the effect of perfection or nonperfection, and the priority of a security interest in a deposit account maintained with that bank even if the transaction does not bear any relation to the bank’s jurisdiction. * NB Effective June 3, 2026 (b) Bank’s jurisdiction. The following rules determine a bank’s jurisdiction for purposes of this part:

(1)

If an agreement between the bank and its customer governing the deposit account expressly provides that a particular jurisdiction is the bank’s jurisdiction for purposes of this part, this article, or this chapter, that jurisdiction is the bank’s jurisdiction.

(2)

If paragraph (1) does not apply and an agreement between the bank and its customer governing the deposit account expressly provides that the agreement is governed by the law of a particular jurisdiction, that jurisdiction is the bank’s jurisdiction.

(3)

If neither paragraph (1) nor paragraph (2) applies and an agreement between the bank and its customer governing the deposit account expressly provides that the deposit account is maintained at an office in a particular jurisdiction, that jurisdiction is the bank’s jurisdiction.

(4)

If none of the preceding paragraphs apply, the bank’s jurisdiction is the jurisdiction in which the office identified in an account statement as the office serving the customer’s account is located.

(5)

If none of the preceding paragraphs apply, the bank’s jurisdiction is the jurisdiction in which the chief executive office of the bank is located.

Source: Section 9-304 — Law Governing Perfection and Priority of Security Interests in Deposit Accounts, https://www.­nysenate.­gov/legislation/laws/UCC/9-304 (updated Dec. 12, 2025; accessed Jan. 24, 2026).

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Verified:
Jan. 24, 2026

Last modified:
Dec. 12, 2025

§ 9-304. Law Governing Perfection & Priority of Sec. Interests in Deposit Accounts's source at nysenate​.gov

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