§ 26-1-12-104 — Rights of purchaser and qualifying purchaser in controllable accounts, controllable payment intangibles, and controllable electronic records; filing of financing statement ineffective as notice of claim of property right in controllable electronic record

Indiana § 26-1-12-104

• Jurisdiction: Indiana
• Title 26: COMMERCIAL LAW
• Art. 1: UNIFORM COMMERCIAL CODE
• Ch. 12: Controllable Electronic Records

Text

(a) This section applies to the acquisition
and purchase rights in a controllable account or a controllable payment
intangible, including the rights and benefits under subsections (c), (d),
(e), (g), and (h) of a purchaser and a qualifying purchaser, in the same
manner that this section applies with respect to a controllable electronic
record.
(b) For purposes of determining whether a purchaser of a
controllable account or a controllable payment intangible is a
qualifying purchaser, the purchaser obtains control of the account or
the payment intangible if the purchaser obtains control of the
controllable electronic record that evidences the account or the
payment intangible.
(c) Except as provided in this section, law other than this chapter
determines:
(1) whether a person acquires a right in a controllable electronic
record; and
(2) the right the person acquires.
(d) A purchaser of a controllable electronic record acquires all rights
in the controllable electronic record that the transferor had or had the
power to transfer. However, a purchaser of a limited interest in a
controllable electronic record acquires rights only to the extent of the
interest purchased.
(e) A qualifying purchaser acquires the qualifying purchaser's rights
in a controllable electronic record free of a claim of a property right in
the controllable electronic record.
(f) Except as provided in subsections (a) and (e) with respect to a
controllable account or a controllable payment intangible, or in law
other than this chapter, a qualifying purchaser takes:
(1) a right to payment;
(2) a right to performance; or
(3) another interest in property;
that is evidenced by a controllable electronic record subject to a claim
of a property right in the right to payment, right to performance, or
other interest in property.
(g) An action may not be asserted against a qualifying purchaser
based on both:
(1) a purchase by the qualifying purchaser of a controllable
electronic record; and
(2) a claim of a property right in another controllable electronic
record;
regardless of whether the action is framed in conversion, replevin,
constructive trust, equitable lien, or another theory.
(h) The filing of a financing statement under IC 26-1-9.1 is not
notice of a claim of property right in a controllable electronic record.

Legislative History

As added by P.L.199-2023, SEC.90.