It is a matter of debate whether PRIMA constitutes a development of the traditional lex rei sitae principle or should be regarded as a new concept.
PRIMA was adopted in a number of jurisdictions as the conflict of laws rule to be applied to the proprietary aspects of collateral transactions.
The direct ownership in the underlying securities makes it difficult to argue that the location of the asset is at the level of an intermediary.
In Germany, where investors have direct ownership rights in underlying securities, implementing Art 9(2) into domestic law has severed the connection with the traditional lex rei sitae approach.
Under Art 8 of the Uniform Commercial Code (UCC), the applicable law is not determined by reference to the location of the asset.
The next two years of negotiations and meetings were spent determining an appropriate formulation of the language of the convention, and which PRIMA concepts to accept and which to reject.