§ 4-9-105 — Control of electronic copy of record evidencing chattel paper

Colorado § 4-9-105

• Jurisdiction: Colorado
• Title 04: Uniform
• Art.: Secured Transactions

Text

(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.

Legislative History

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.