(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 communicat
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(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.