1. The local law of the issuers jurisdiction, as specified in subsection 4, governs: (a) The validity of a security; (b) The rights and duties of the issuer with respect to registration of transfer; (c) The effectiveness of registration of transfer by the issuer; (d) Whether the issuer owes any duties to an adverse claimant to a security; and (e) Whether an adverse claim can be asserted against a person to whom transfer of a certificated or uncertificated security is registered or a person who obtains control of an uncertificated security. 2. The local law of the securities intermediarys jurisdiction, as specified in subsection 5, governs: (a) Acquisition of a security entitlement from the securities intermediary; (b) The rights and duties of the securities intermediary and entitlement holder arising out of a security entitlement; (c) Whether the securities intermediary owes any duties to an adverse claimant to a security entitlement; and (d) 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. 3. The local law of the jurisdiction in which a security certificate is located at the time of delivery governs whether an adverse claim can be asserted against a person to whom the security certificate is delivered. 4. Issuers jurisdiction means the jurisdiction under which the issuer of the security is organized or, if permitted by the law of that jurisdiction, the law of another jurisdiction specified by the issuer. An issuer organized under the law of this State may specify the law of another jurisdiction as the law governing the matters specified in paragraphs (b) to (e), inclusive, of subsection 1. 5. The following rules determine a securities intermediarys jurisdiction for purposes of this section: (a) If an agreement between the securities intermediary and its entitlement holder expressly provides the securities intermediarys jurisdiction for purposes of this part, this article or the Uniform Commercial Code, that jurisdiction is the securities intermediarys jurisdiction. (b) If paragraph (a) does not apply and an agreement between the securities intermediary and its entitlement holder governing the securities account expressly provides that the agreement is governed by the law of a particular jurisdiction, that jurisdiction is the securities intermediarys jurisdiction. (c) If neither paragraph (a) nor paragraph (b) applies and an agreement between the securities intermediary and its entitlement holder governing the securities account expressly provides that the securities account is maintained at an office in a particular jurisdiction, that jurisdiction is the securities intermediarys jurisdiction. (d) If neither paragraph (a) nor paragraph (b) nor paragraph (c) applies, the securities intermediarys jurisdiction is the jurisdiction in which the office identified in an account statement as the office serving the entitlement holders account is located. (e) If none of the preceding paragraphs applies, the securities intermediarys jurisdiction is the jurisdiction in which its chief executive office is located. 6. A securities intermediarys jurisdiction is not determined by the physical location of certificates representing financial assets, or by the jurisdiction in which is organized the issuer of the financial asset with respect to which an entitlement holder has a security entitlement or by the location of facilities for data processing or other recordkeeping concerning the account. 7. The local law of the issuers jurisdiction or the securities intermediarys jurisdiction governs a matter or transaction specified in subsections 1 and 2 even if the matter or transaction does not bear any relation to the jurisdiction.
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