§ 26-1-12-105 — Control of controllable electronic record; exclusive power; control on behalf of a person

Indiana § 26-1-12-105

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

Text

(a) A person has control of a controllable
electronic record if the electronic record, a record attached to or
logically associated with the electronic record, or a system in which the
electronic record is recorded:
(1) gives the person:
(A) power to avail itself of substantially all the benefit from the
electronic record; and
(B) exclusive power, subject to subsection (b), to:
(i) prevent others from availing themselves of substantially
all the benefit from the electronic record; and
(ii) transfer control of the electronic record to another person
or cause another person to obtain control of another
controllable electronic record as a result of the transfer of the
electronic record; and
(2) enables the person readily to identify itself in any way,
including by name, identifying number, cryptographic key, office,
or account number, as having powers specified in subdivision (1).
(b) Subject to subsection (c), a power is exclusive under subsection
(a)(1)(B)(i) and (a)(1)(B)(ii) even if:
(1) the controllable electronic record, a record attached to or
logically associated with the electronic record, or a system in
which the electronic record is recorded limits the use of the
electronic record or has a protocol programmed to cause a change,
including a transfer or loss of control or a modification of benefits
afforded by the electronic record; or
(2) the power is shared with another person.
(c) A power of a person is not shared with another person under
subsection (b)(2) and the person's power is not exclusive if:
(1) the person 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
person; or
(B) is the transferor to the person of an interest in the
controllable electronic record or in a controllable account or
controllable payment intangible evidenced by the controllable
electronic record.
(d) If a person has the powers specified in subsection (a)(1)(B)(i)
and (a)(1)(B)(ii), the powers are presumed to be exclusive.
(e) A person has control of a controllable electronic record if
another person, other than the transferor to the person of an interest in
the controllable electronic record, or in a controllable account or
controllable payment intangible evidenced by the controllable
electronic record:
(1) has control of the electronic record and acknowledges that it
has control on behalf of the person; or
(2) obtains control of the electronic record after having
acknowledged that it will obtain control of the electronic record
on behalf of the person.
(f) A person that has control under this section is not required to
acknowledge that it has control on behalf of another person.
(g) If a person acknowledges that it has or will obtain control on
behalf of another person, unless the person otherwise agrees or law
other than this chapter or IC 26-1-9.1 otherwise provides, the person
does not owe any duty to any other person and is not required to
confirm the acknowledgment to any other person.

Legislative History

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