§ 9-105. Control of electronic copy of record evidencing chattel paper.
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/de/title-6/chapter-9/9-105A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
(a)General rule: control of electronic copy of record evidencing chattel paper. —
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)Single authoritative copy. —
A system satisfies subsection
(a)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 which is unique, identifiable, and, except as otherwise provided in paragraphs (4), (5), and (6), 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)One or more authoritative copies. —
A system satisfies subsection (a), 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), 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)Meaning of exclusive. —
Subject to subsection (e), a power is exclusive under subsection (c)(3)(A) and
(B)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)When power not shared with another person. —
A power of a purchaser is not shared with another person under subsection (d)(2) 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)Presumption of exclusivity of certain powers. —
If a purchaser has the powers specified in subsection (c)(3)(A) and (B), the powers are presumed to be exclusive.
(g)Obtaining control through another person. —
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.