Control of Electronic Chattel Paper

  1. Law
  2. Georgia Code
  3. Commercial Code
  4. Secured Transactions
  5. General Provisions
  6. Control of Electronic Chattel Paper

Checkout our iOS App for a better way to browser and research.

  1. General rule; control of electronic chattel paper. 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.
  2. Specific facts giving control. A system satisfies the provisions of subsection (a) of this Code 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 which is unique, identifiable, and, except as otherwise provided in paragraphs (4), (5), and (6) of this subsection, 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 authorized or unauthorized.

(Code 1981, §11-9-105, enacted by Ga. L. 2001, p. 362, § 1; Ga. L. 2013, p. 690, § 2/SB 185.)

The 2013 amendment, effective July 1, 2013, designated the existing provisions as subsections (a) and (b); in subsection (a), added the subsection heading and added "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" at the end; in the introductory language of subsection (b), added the subsection heading and "A system satisfies the provisions of subsection (a) of this Code section" at the beginning; substituted "subsection" for "Code section" in paragraph (b)(1); in paragraph (b)(4), substituted "amendments" for "revisions" near the beginning and substituted "consent" for "participation" near the end; and, in paragraph (b)(6), substituted "amendment" for "revision" near the beginning and substituted "as authorized or unauthorized" for "an authorized or unauthorized revision" at the end.

RESEARCH REFERENCES

U.L.A.

- Uniform Commercial Code (U.L.A.) § 9-105.


Download our app to see the most-to-date content.