§ 10:12-104 — Rights in controllable account, controllable electronic record, and controllable

§12-104. Rights in controllable account, controllable electronic record, and controllable
payment intangible
(a) Applicability of Section to controllable account and controllable payment
intangible. This Section applies to the acquisition and purchase of rights in a controllable
account or controllable payment intangible, including the rights and benefits under
Subsections (c), (d), (e), (g), and (h) of this Section of a purchaser and qualifying purchaser,
in the same manner this Section applies to a controllable electronic record.
(b) Control of controllable account and controllable payment intangible. To
determine whether a purchaser of a controllable account or a controllable payment intangible
is a qualifying purchaser, the purchaser obtains control of the account or payment intangible
if it obtains control of the controllable electronic record that evidences the account or
payment intangible.
(c) Applicability of other law to acquisition of rights. Except as provided in this
Section, law other than this Chapter determines whether a person acquires a right in a
controllable electronic record and the right the person acquires.
(d) Shelter principle and purchase of limited interest. A purchaser of a controllable
electronic record acquires all rights in the controllable electronic record that the transferor
had or had power to transfer, except that a purchaser of a limited interest in a controllable
electronic record acquires rights only to the extent of the interest purchased.
(e) Rights of qualifying purchaser. A qualifying purchaser acquires its rights in the
controllable electronic record free of a claim of a property right in the controllable electronic
record.
(f) Limitation of rights of qualifying purchaser in other property. Except as provided
in Subsections (a) and (e) of this Section for a controllable account and a controllable
payment intangible or law other than this Chapter, a qualifying purchaser takes a right to
payment, right to performance, or other interest in property evidenced by the 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) No-action protection for qualifying purchaser. An action may not be asserted
against a qualifying purchaser based on both a purchase by the qualifying purchaser of a
controllable electronic record and a claim of a property right in another controllable
electronic record, whether the action is framed in conversion, replevin, constructive trust,
equitable lien, or other theory.
(h) Filing not notice. Filing of a financing statement under Chapter 9 of this Title
is not notice of a claim of a property right in a controllable electronic record.

Legislative History

Acts 2024, No. 773, §1.