(a) Except as provided in Subsection (b) of this section, the local law of a controllable electronic record’s jurisdiction governs a matter covered by Sections 55-12- 101 through 55-12-106 N.M. Stat. Ann..

(b) For a controllable electronic record that evidences a controllable account or controllable payment intangible, the local law of the controllable electronic record’s jurisdiction governs a matter covered by Section 55-12-106 N.M. Stat. Ann. unless an effective agreement determines that the local law of another jurisdiction governs.

(c) The following rules determine a controllable electronic record’s jurisdiction pursuant to this section:

(1)     if the controllable electronic record, or a record attached to or logically associated with the controllable electronic record and readily available for review, expressly provides that a particular jurisdiction is the controllable electronic record’s jurisdiction for purposes of Sections 55-12-101 through 55-12-106 N.M. Stat. Ann. or the Uniform Commercial Code, that jurisdiction is the controllable electronic record’s jurisdiction;

(2)     if Paragraph (1) of this subsection does not apply and the rules of the system in which the controllable electronic record is recorded are readily available for review and expressly provide that a particular jurisdiction is the controllable electronic record’s jurisdiction for purposes of Sections 55-12-101 through 55-12-106 N.M. Stat. Ann. or the Uniform Commercial Code, that jurisdiction is the controllable electronic record’s jurisdiction;

(3)     if Paragraphs (1) and (2) of this subsection do not apply and the controllable electronic record, or a record attached to or logically associated with the controllable electronic record and readily available for review, expressly provides that the controllable electronic record is governed by the law of a particular jurisdiction, that jurisdiction is the controllable electronic record’s jurisdiction;

(4)     if Paragraphs (1), (2) and (3) of this subsection do not apply and the rules of the system in which the controllable electronic record is recorded are readily available for review and expressly provide that the controllable electronic record or the system is governed by the law of a particular jurisdiction, that jurisdiction is the controllable electronic record’s jurisdiction; and

(5)     if Paragraphs (1) through (4) of this subsection do not apply, the controllable electronic record’s jurisdiction is the District of Columbia.

(d) If Paragraph (5) of Subsection (c) of this section applies and Article 12 is not in effect in the District of Columbia without material modification, the governing law for a matter covered by Sections 55-12-101 through 55-12-106 N.M. Stat. Ann. is the law of the District of Columbia as though those sections were in effect in the District of Columbia without material modification. In this subsection, “Article 12” means Article 12 of Uniform Commercial Code Amendments (2022).

(e) To the extent Subsections (a) and (b) of this section provide that the local law of the controllable electronic record’s jurisdiction governs a matter covered by Sections 55- 12-101 through 55-12-106 N.M. Stat. Ann., that law governs even if the matter or a transaction to which the matter relates does not bear any relation to the controllable electronic record’s jurisdiction.

(f) The rights acquired pursuant to Section 55-12-104 N.M. Stat. Ann. by a purchaser or qualifying purchaser are governed by the law applicable pursuant to this section at the time of purchase.