Control of electronic copy of record evidencing chattel paper

4-9-105. Control of electronic copy of record evidencing chattel paper. (a) A purchaser has control of an authoritative electronic copy of a record evidencing chattel paper if a system employed for evidencing the assignment of interests in the chattel paper reliably establishes the purchaser as the person to which the authoritative electronic copy was assigned. (b) A system satisfies subsection (a) of this section if the record or records evidencing the chattel paper are created, stored, and assigned in a manner that: (1) A single authoritative copy of the record or records exists which is unique, identifiable, and, except as otherwise provided in subsections (a)(4), (a)(5), and (a)(6) of this section, unalterable; (2) The authoritative copy identifies the purchaser as the assignee of the record or records; (3) The authoritative copy is communicated to and maintained by the purchaser 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 purchaser; (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. (c) A system satisfies subsection (a) of this section, and a purchaser has control of an authoritative electronic copy of a record evidencing chattel paper, if the electronic copy, a record attached to or logically associated with the electronic copy, or a system in which the electronic copy is recorded: (1) Enables the purchaser readily to identify each electronic copy as either an authoritative copy or a nonauthoritative copy; (2) Enables the purchaser readily to identify itself in any way, including by name, identifying number, cryptographic key, office, or account number, as the assignee of the authoritative electronic copy; and (3) Gives the purchaser exclusive power, subject to subsection (d) of this section, to: (A) Prevent others from adding or changing an identified assignee of the authoritative electronic copy; and (B) Transfer control of the authoritative electronic copy. (d) Subject to subsection (e) of this section, a power is exclusive under subsections (c)(3)(A) and (c)(3)(B) of this section even if: (1) The authoritative electronic copy, a record attached to or logically associated with the authoritative electronic copy, or a system in which the authoritative electronic copy is recorded limits the use of the authoritative electronic copy or has a protocol programmed to cause a change, including a transfer or loss of control; or (2) The power is shared with another person. (e) A power of a purchaser is not shared with another person under subsection (d)(2) of this section and the purchaser's power is not exclusive if: (1) The purchaser can exercise the power only if the power also is exercised by the other person; and (2) The other person: (A) Can exercise the power without exercise of the power by the purchaser; or (B) Is the transferor to the purchaser of an interest in the chattel paper. (f) If a purchaser has the powers specified in subsections (c)(3)(A) and (c)(3)(B) of this section, the powers are presumed to be exclusive. (g) A purchaser has control of an authoritative electronic copy of a record evidencing chattel paper if another person, other than the transferor to the purchaser of an interest in the chattel paper: (1) Has control of the authoritative electronic copy and acknowledges that it has control on behalf of the purchaser; or (2) Obtains control of the authoritative electronic copy after having acknowledged that it will obtain control of the electronic copy on behalf of the purchaser. Source: L. 2001: Entire article R&RE, p. 1329, � 1, effective July 1. L. 2012: Entire section amended, (HB 12-1262), ch. 170, p. 596, � 2, effective July 1, 2013. L. 2023: (a), IP(b), (b)(1), (b)(2), (b)(3), and (b)(4) amended and (c), (d), (e), (f), and (g) added, (SB 23-090), ch. 136, p. 544, � 44, effective August 7.