TITLE 28

COMMERCIAL TRANSACTIONS

CHAPTER 9

SECURED TRANSACTIONS

PART 1.

GENERAL PROVISIONS

28-9-105.  Control of electronic chattel paper. (a) A secured party has control of electronic chattel paper if a system employed for evidencing the transfer of interests in the chattel paper reliably establishes the secured party as the person to which the chattel paper was assigned.

(b)  A system satisfies subsection (a) of this section, and a secured party has control of electronic chattel paper, if the record or records comprising the chattel paper are created, stored and assigned in such a manner that:

(1)  A single authoritative copy of the record or records exists which is unique, identifiable and, except as otherwise provided in paragraphs (4), (5) and (6) of this subsection, unalterable;

(2)  The authoritative copy identifies the secured party as the assignee of the record or records;

(3)  The authoritative copy is communicated to and maintained by the secured party or its designated custodian;

(4)  Copies or amendments that add or change an identified assignee of the authoritative copy can be made only with the consent of the secured party;

(5)  Each copy of the authoritative copy and any copy of a copy is readily identifiable as a copy that is not the authoritative copy; and

(6)  Any amendment of the authoritative copy is readily identifiable as authorized or unauthorized.

History:

[28-9-105, added 2001, ch. 208, sec. 2, p. 719; am. 2012, ch. 145, sec. 2, p. 390.]