47-9105. Control of electronic chattel paper

195 words·~1 min read·/az/title-47/47-9105

A research copy — for the controlling text, always check the official state or federal source. Not legal advice.

A. A secured party has control of electronic chattel paper if a system employed for evidencing the transfer of interests in the chattel paper reliably establishes the secured party as the person to which the chattel paper was assigned.

B. A system satisfies subsection A of this section if the record or records comprising the chattel paper are created, stored and assigned in such 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, unalterable;

2. The authoritative copy identifies the secured party as the assignee of the record or records;

3. The authoritative copy is communicated to and maintained by the secured party 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 secured party;

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 an authorized or unauthorized revision.