[Code of Federal Regulations]

[Title 24, Volume 1]

[Revised as of April 1, 2006]

From the U.S. Government Printing Office via GPO Access

[CITE: 24CFR81.92]



[Page 469-470]

 

                 TITLE 24--HOUSING AND URBAN DEVELOPMENT

 

PART 81_THE SECRETARY OF HUD'S REGULATION OF THE FEDERAL NATIONAL 

MORTGAGE ASSOCIATION (FANNIE MAE) AND THE FEDERAL HOME LOAN MORTGAGE 

CORPORATION (FREDDIE MAC)--Table of Contents

 

                     Subpart H_Book-Entry Procedures

 

Sec.  81.92  Law governing rights and obligations of United States, 

Federal Reserve Banks, and GSEs; rights of any Person against United 

States, Federal Reserve Banks, and GSEs; Law governing other interests.



    (a) Except as provided in paragraph (b) of this section, the 

following rights and obligations are governed solely by the book-entry 

regulations contained in this subpart H, the Securities Documentation, 

and Federal Reserve Bank Operating Circulars (but not including any 

choice of law provisions in the Security Documentation to the extent 

such provisions conflict with the Book-entry regulations contained in 

this subpart H):

    (1) The rights and obligations of a GSE and the Federal Reserve 

Banks with respect to:

    (i) A Book-entry GSE Security or Security Entitlement; and

    (ii) The operation of the Book-entry System as it applies to GSE 

Securities; and

    (2) The rights of any Person, including a Participant, against a GSE 

and the Federal Reserve Banks with respect to:

    (i) A Book-entry GSE Security or Security Entitlement; and

    (ii) The operation of the Book-entry System as it applies to GSE 

Securities;

    (b) A security interest in a Security Entitlement that is in favor 

of a Federal Reserve Bank from a Participant and that is not recorded on 

the books of a Federal Reserve Bank pursuant to Sec.  81.93(c)(1), is 

governed by the law (not including the conflict-of-law rules) of the 

jurisdiction where the head office of the Federal Reserve Bank 

maintaining the Participant's Securities Account is located. A security 

interest in a Security Entitlement that is in favor of a Federal Reserve 

Bank from a Person that is not a Participant, and that is not recorded 

on the books of a Federal Reserve Bank pursuant to Sec.  81.93(c)(1), is 

governed by the law determined in the manner specified in paragraph (d) 

of this section.

    (c) If the jurisdiction specified in the first sentence of paragraph 

(b) of this section is a State that has not adopted Revised Article 8, 

then the law specified in paragraph (b) of this section shall be the law 

of that State as



[[Page 470]]



though Revised Article 8 had been adopted by that State.

    (d) To the extent not otherwise inconsistent with this subpart H, 

and notwithstanding any provision in the Security Documentation setting 

forth a choice of law, the provisions set forth in 31 CFR 357.11 

regarding law governing other interests apply and shall be read as 

though modified to effectuate the application of 31 CFR 357.11 to the 

GSEs.



[61 FR 63948, Dec. 2, 1996, as amended at 62 FR 28977, May 29, 1997]