§ 41-12-04 — (12-104) Rights in controllable account, controllable electronic record, and controllable payment intangible

North Dakota § 41-12-04

• Jurisdiction: North Dakota
• Title 41: Uniform Commercial Code
• Ch. 41-12: Uniform Commercial Code - Controllable Electronic Records

Text

controllable payment intangible.
1. 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 3, 4, 5, 7, and 8 of a purchaser and qualifying purchaser, in the same
manner this section applies to a controllable electronic record.
2. 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.
3. 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.
4. 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.

5. A qualifying purchaser acquires its rights in the controllable electronic record free of a
claim of a property right in the controllable electronic record.
6. Except as provided in subsections 1 and 5 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.
7. 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.
8. Filing of a financing statement under chapter 41-09 is not notice of a claim of a
property right in a controllable electronic record.