§ 26-1-9.1-105 — Control of authoritative electronic copy of a record evidencing chattel paper; exclusive power; control on behalf of purchaser

Indiana § 26-1-9.1-105

• Jurisdiction: Indiana
• Title 26: COMMERCIAL LAW
• Art. 1: UNIFORM COMMERCIAL CODE
• Ch. 9.1: 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) 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
subdivisions (4), (5), and (6), 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), 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),
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), a power is exclusive under subsection
(c)(3)(A) and (c)(3)(B) 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), 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 subsection (c)(3)(A)
and (c)(3)(B), 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
authoritative electronic copy on behalf of the purchaser.

Legislative History

As added by P.L.57-2000, SEC.45. Amended by P.L.54-2011, SEC.4; P.L.199-2023, SEC.42.