§ 55-9-105 — Control of electronic copy of record evidencing chattel

paper. (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) of this section 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 that is unique, identifiable and, except as otherwise provided in Paragraphs (4), (5) and (6) of this subsection, 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) of this section, 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) of this section, 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) of this section, a power is exclusive under Subparagraphs (A) and (B) of Paragraph (3) of Subsection (c) of this section 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 Paragraph (2) of Subsection (d) of this section 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 Subparagraphs (A) and (B) of Paragraph (3) of Subsection (c) of this section, 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 electronic copy on behalf of the purchaser.

Legislative History

1978 Comp., § 55-9-105, enacted by Laws 2001, ch. 139, § 5; 2013, ch. 137, §