Section 9--306. Law   Governing  Perfection  and  Priority  of  Security
                    Interests in Letter-of-credit Rights.
    (a) Governing  law:  issuer's  or  nominated  person's   jurisdiction.
  Subject to subsection (c), the local law of the issuer's jurisdiction or
  a  nominated  person's  jurisdiction  governs  perfection, the effect of
  perfection or nonperfection, and the priority of a security interest  in
  a  letter-of-credit  right  if  the  issuer's  jurisdiction or nominated
  person's jurisdiction is a state.
    (b) Issuer's or nominated person's jurisdiction. For purposes of  this
  part, an issuer's jurisdiction or nominated person's jurisdiction is the
  jurisdiction  whose law governs the liability of the issuer or nominated
  person with respect to the letter-of-credit right as provided in Section
  5--116.
    (c) When section not applicable. This section  does  not  apply  to  a
  security interest that is perfected only under Section 9--308(d).