§ 12-104 — Rights in Controllable Account, Controllable Electronic Record, and Controllable Payment Intangible

* Section 12--104. Rights in Controllable Account, Controllable\n Electronic Record, and Controllable Payment\n Intangible.\n (a) Applicability of section to controllable account and controllable\npayment intangible. This section applies to the acquisition and purchase\nof rights in a controllable account or controllable payment intangible,\nincluding the rights and benefits under subsections (c), (d), (e), (g),\nand (h) of a purchaser and qualifying purchaser, in the same manner this\nsection applies to a controllable electronic record.\n (b) Control of controllable account and controllable payment\nintangible. To determine whether a purchaser of a controllable account\nor a controllable payment intangible is a qualifying purchaser, the\npurchaser obtains control of the account or payment intangible if it\nobtains control of the controllable electronic record that evidences the\naccount or payment intangible.\n (c) Applicability of other law to acquisition of rights. Except as\nprovided in this section, law other than this article determines whether\na person acquires a right in a controllable electronic record and the\nright the person acquires.\n (d) Shelter principle and purchase of limited interest. A purchaser of\na controllable electronic record acquires all rights in the controllable\nelectronic record that the transferor had or had power to transfer,\nexcept that a purchaser of a limited interest in a controllable\nelectronic record acquires rights only to the extent of the interest\npurchased.\n (e) Rights of qualifying purchaser. A qualifying purchaser acquires\nits rights in the controllable electronic record free of a claim of a\nproperty right in the controllable electronic record.\n (f) Limitation of rights of qualifying purchaser in other property.\nExcept as provided in subsections (a) and (e) for a controllable account\nand a controllable payment intangible or law other than this article, a\nqualifying purchaser takes a right to payment, right to performance, or\nother interest in property evidenced by the controllable electronic\nrecord subject to a claim of a property right in the right to payment,\nright to performance, or other interest in property.\n (g) No-action protection for qualifying purchaser. An action may not\nbe asserted against a qualifying purchaser based on both a purchase by\nthe qualifying purchaser of a controllable electronic record and a claim\nof a property right in another controllable electronic record, whether\nthe action is framed in conversion, replevin, constructive trust,\nequitable lien, or other theory.\n (h) Filing not notice. Filing of a financing statement under Article 9\nis not notice of a claim of a property right in a controllable\nelectronic record.\n * NB Effective June 3, 2026\n