N.Y. UCC Law § 9-306

Section 9--306. Law Governing Perfection and Priority of Security\n Interests in Letter-of-credit Rights.\n (a) Governing law: issuer's or nominated person's jurisdiction.\nSubject to subsection (c), the local law of the issuer's jurisdiction or\na nominated person's jurisdiction governs perfection, the effect of\nperfection or nonperfection, and the priority of a security interest in\na letter-of-credit right if the issuer's jurisdiction or nominated\nperson's jurisdiction is a state.\n (b) Issuer's or nominated person's jurisdiction. For purposes of this\npart, an issuer's jurisdiction or nominated person's jurisdiction is the\njurisdiction whose law governs the liability of the issuer or nominated\nperson with respect to the letter-of-credit right as provided in Section\n5--116.\n (c) When section not applicable. This section does not apply to a\nsecurity interest that is perfected only under Section 9--308(d).\n