(1) For the purposes of this Part, “location” in relation to the grantor, means —
(a) the State in which the grantor's sole place of business is located;
(b) if the grantor has a place of business in more than one State, the State in which the central administration of the business of the grantor is exercised; and
(c) if the grantor does not have a place of business, the State in which the grantor has his or her habitual residence.
(2) Without prejudice to subsection (3), references to the location of encumbered property or the grantor under this Part refers —
(a) for creation of a security interest, to the location at the time of the putative creation of the security interest; and
(b) for third-party effectiveness and priority, to the location at the time at which the issue arises or is relevant.
(3) If the right of a secured creditor in the encumbered property is created and made effective against a third party and the rights of the competing claimants are established before a change in the location of the property or the grantor, a reference in this Part to the location of the encumbered property or of the grantor is, with respect to third-party effectiveness and a priority, to the location before the change in location.
(4) A reference to the law of a State as the law applicable to an issue is a reference to the law in force in that State other than its laws governing conflict of laws.
(5) If the law applicable to an issue is the law of a State that comprises one or more territorial units each of which has its own rules of law in respect of that issue —
(a) a reference in this Part to the law of a State means the law in force in the relevant territorial unit; and
(b) the internal conflict-of-laws provisions of that State, or in the absence of such provisions, of that territorial unit determine the relevant territorial unit whose substantive law is to apply.