Territorial application of article to goods covered by certificate of title.

Subject to the provisions of §§ 28:2A-304(c) and 28:2A-305(c), with respect to goods covered by a certificate of title issued under a statute of the District or of another jurisdiction, compliance and the effect of compliance or noncompliance with a certificate of title statute are governed by the law (including the conflict of laws rules) of the jurisdiction issuing the certificate until the earlier of (i) surrender of the certificate, or (ii) 4 months after the goods are removed from that jurisdiction and thereafter until a new certificate of title is issued by another jurisdiction. Definitional Cross Reference: “Goods”. Section 2A-103(1)(h). Cross References: Sections 2A-304(3), 2A-305(3), 9-103(2)(b) and 9-103(2)(d). Purposes: The new certificate referred to in (b) must be permanent, not temporary. Generally, the lessor or creditor whose interest is indicated on the most recently issued certificate of title will prevail over interests indicated on certificates issued previously by other jurisdictions. This provision reflects a policy that it is reasonable to require holders of interests in goods covered by a certificate of title to police the goods or risk losing their interests when a new certificate of title is issued by another jurisdiction. Changes: Substantially revised. The provisions of the last sentence of Section 9-103(2)(b) have not been incorporated as it is superfluous in this context. The provisions of Section 9-103(2)(d) have not been incorporated because the problems dealt with are adequately addressed by this section and Sections 2A-304(3) and 305(3). Uniform Statutory Source:Section 9-103(2)(a) and (b).