2025 Session
Last amended: 2000 session
§ 336.9-329 — Priority of Security Interests in Letter of Credit Right
Plain-Language Summary
A security interest in letter-of-credit rights perfected by control has priority over one not perfected by control.
336.9-329 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 section 336.9-107 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 section 336.9-314 rank according to priority in time of obtaining control.
History:
History: History:
2000 c 399 art 1 s 49
Practical Notes
For letter of credit rights, a lender with ‘control’ beats one without.