NRS 104.9105 Control of electronic copy of record evidencing chattel paper.

600 words·~3 min read·/nv/chapter-104-uniform-commercial-code-original-articles/104-9105·

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

1. 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.

2. A system satisfies subsection 1 if the record or records evidencing the chattel paper are created, stored and assigned in such a manner that:

(a)A single authoritative copy of the record or records exists which is unique, identifiable and, except as otherwise provided in paragraphs (d),

(e)and (f), unalterable;

(b)The authoritative copy identifies the purchaser as the assignee of the record or records;

(c)The authoritative copy is communicated to and maintained by the purchaser or its designated custodian;

(d)Copies or amendments that add or change an identified assignee of the authoritative copy can be made only with the consent of the purchaser;

(e)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

(f)Any amendment of the authoritative copy is readily identifiable as authorized or unauthorized.

3. A system satisfies subsection 1, 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:

(a)Enables the purchaser readily to identify each electronic copy as either an authoritative copy or a nonauthoritative copy;

(b)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

(c)Gives the purchaser exclusive power, subject to subsection 4, to:

(1)Prevent others from adding or changing an identified assignee of the authoritative electronic copy; and

(2)Transfer control of the authoritative electronic copy.

4. Subject to subsection 5, a power is exclusive under subparagraphs

(1)and

(2)of paragraph

(c)of subsection 3, even if:

(a)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

(b)The power is shared with another person.

5. A power of a purchaser is not shared with another person under paragraph

(b)of subsection 4 and the purchaser’s power is not exclusive if:

(a)The purchaser can exercise a power only if the power also is exercised by the other person; and

(b)The other person:

(1)Can exercise the power without exercise of the power by the purchaser; or

(2)Is the transferor to the purchaser of an interest in the chattel paper.

6. If a purchaser has the powers specified in subparagraphs

(1)and

(2)of paragraph

(c)of subsection 3, the powers are presumed to be exclusive.

7. 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:

(a)Has control of the authoritative electronic copy and acknowledges that it has control on behalf of the purchaser; or

(b)Obtains control of the authoritative electronic copy after having acknowledged that it will obtain control of the electronic copy on behalf of the purchaser.