Control of electronic chattel paper.

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  • (1) A secured party has control of electronic chattel paper if a system employed by evidencing the transfer of interests in the chattel paper reliably establishes the secured party as the person to whom the chattel paper was assigned.
  • (2) A system satisfies Subsection (1) if the record or records comprising 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 Subsections (2)(d), (e), and (f), unalterable;
    • (b) the authoritative copy identifies the secured party as the assignee of the record or records;
    • (c) the authoritative copy is communicated to and maintained by the secured party 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 secured party;
    • (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.




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