(1) Except as provided in subsection (2) of this section, the local law of a controllable electronic record’s jurisdiction governs a matter covered under ORS 80.1010 to 80.1070.
(2) For a controllable electronic record that evidences a controllable account or controllable payment intangible, the local law of the controllable electronic record’s jurisdiction governs a matter covered by ORS 80.1060 unless an effective agreement determines that the local law of another jurisdiction governs.
(3) The following rules determine a controllable electronic record’s jurisdiction under this section:
(a) If the controllable electronic record, or a record attached to or logically associated with the controllable electronic record and readily available for review, expressly provides that a particular jurisdiction is the controllable electronic record’s jurisdiction for purposes of ORS 80.1010 to 80.1070 or the Uniform Commercial Code, that jurisdiction is the controllable electronic record’s jurisdiction.
(b) If paragraph (a) of this subsection does not apply and the rules of the system in which the controllable electronic record is recorded are readily available for review and expressly provide that a particular jurisdiction is the controllable electronic record’s jurisdiction for purposes of ORS 80.1010 to 80.1070 or the Uniform Commercial Code, that jurisdiction is the controllable electronic record’s jurisdiction.
(c) If paragraphs (a) and (b) of this subsection do not apply and the controllable electronic record, or a record attached to or logically associated with the controllable electronic record and readily available for review, expressly provides that the controllable electronic record is governed by the law of a particular jurisdiction, that jurisdiction is the controllable electronic record’s jurisdiction.
(d) If paragraphs (a), (b) and (c) of this subsection do not apply and the rules of the system in which the controllable electronic record is recorded are readily available for review and expressly provide that the controllable electronic record or the system is governed by the law of a particular jurisdiction, that jurisdiction is the controllable electronic record’s jurisdiction.
(e) If paragraphs (a) to (d) of this subsection do not apply, the controllable electronic record’s jurisdiction is the District of Columbia.
(4) If subsection (3)(e) of this section applies and Article 12 of the Uniform Commercial Code is not in effect in the District of Columbia without material modification, the governing law for a matter covered by ORS 80.1010 to 80.1070 is the law of the District of Columbia as though Article 12 were in effect in the District of Columbia without material modification. In this subsection “Article 12” means Article 12 of the Uniform Commercial Code Amendments of 2022.
(5) To the extent that subsections (1) and (2) of this section provide that the local law of the controllable electronic record’s jurisdiction governs a matter covered by ORS 80.1010 to 80.1070, that law governs even if the matter or a transaction to which the matter relates does not bear any relation to the controllable electronic record’s jurisdiction.
(6) The rights acquired under ORS 80.1040 by a purchaser or qualifying purchaser are governed by the law applicable under this section at the time of purchase.
(Temporary provisions relating to transitional matters, applicability and effective dates of amendments to the Uniform Commercial Code)
(a) “Adjustment date” means the date that is one year after the effective date of this 2025 Act .
(b) “Article 12 property” means a controllable account, controllable electronic record or controllable payment intangible.
(2) The following definitions in other chapters of the Uniform Commercial Code apply to sections 108 to 115 of this 2025 Act:
(a) “Controllable account”: ORS 79.0102 .
(b) “Controllable electronic record”: section 95 of this 2025 Act [80.1020].
(c) “Controllable payment intangible”: ORS 79.0102 .
(d) “Electronic money”: ORS 79.0102 .
(e) “Financing statement”: ORS 79.0102 .
(3) ORS chapter 79 contains general definitions and principles of construction applicable throughout sections 108 to 115 of this 2025 Act.
(2) Except as provided in subsection (3) of this section and sections 108 to 115 of this 2025 Act:
(a) A transaction, lien or interest in property that was validly entered into, created or transferred before the effective date of this 2025 Act and was not governed by the Uniform Commercial Code, but would be subject to ORS chapter 79 and sections 94 to 100 of this 2025 Act if it had been entered into, created or transferred on or after the effective date of this 2025 Act, including the rights, duties and interests flowing from the transaction, lien or interest, remains valid on and after the effective date of this 2025 Act; and
(b) The transaction, lien or interest may be terminated, completed, consummated and enforced as required or permitted under this 2025 Act or by the law that would apply if this 2025 Act had not taken effect.
(3) This 2025 Act does not affect an action, case or proceeding commenced before the effective date of this 2025 Act.
(2) If a security interest is enforceable and perfected immediately before the effective date of this 2025 Act but the requirements for enforceability and perfection under this 2025 Act are not satisfied on the effective date of this 2025 Act, the security interest:
(a) Is a perfected security interest until the earlier of the time perfection would have ceased under the law in effect immediately before the effective date of this 2025 Act or the adjustment date;
(b) Remains enforceable thereafter only if the security interest satisfies the requirements for enforceability under ORS 79.0203 before the adjustment date; and
(c) Remains perfected thereafter only if the requirements for perfection under this 2025 Act are satisfied before the time specified in paragraph (a) of this subsection.
(1) Remains an enforceable security interest until the adjustment date;
(2) Remains enforceable thereafter if the security interest becomes enforceable under ORS 79.0203 on the effective date of this 2025 Act or before the adjustment date; and
(3) Becomes perfected:
(a) Without further action on the effective date of this 2025 Act if the requirements for perfection under this 2025 Act are satisfied before, or at, that time; or
(b) When the requirements for perfection are satisfied if the requirements are satisfied after that time.
(2) The filing of a financing statement before the effective date of this 2025 Act is effective to perfect a security interest on the effective date of this 2025 Act to the extent that the filing would satisfy the requirements for perfection under this 2025 Act.
(3) The taking of an action before the effective date of this 2025 Act is sufficient for the enforceability of a security interest on the effective date of this 2025 Act if the action would satisfy the requirements for enforceability under this 2025 Act.
(2) Subject to subsection (3) of this section, if the priorities of claims to collateral were established before the effective date of this 2025 Act , ORS chapter 79, as in effect before the effective date of this 2025 Act, determines priority.
(3) On the adjustment date, to the extent the priorities determined by ORS chapter 79 modify the priorities established before the effective date of this 2025 Act, the priority of claims to Article 12 property and electronic money established before the effective date of this 2025 Act cease to apply.
(2) Subject to subsection (3) of this section, when the priority rules of ORS chapter 79 do not apply and the priorities of claims to Article 12 property were established before the effective date of this 2025 Act , law other than sections 94 to 100 of this 2025 Act determines priority.
(3) When the priority rules of ORS chapter 79 do not apply, to the extent the priorities determined by this 2025 Act modify the priorities established before the effective date of this 2025 Act, the priorities of claims to Article 12 property established before the effective date of this 2025 Act cease to apply on the adjustment date.
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