Control of Electronic Chattel Paper.

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34.1-9-105. Control of electronic chattel paper.

(a) A secured party has control of electronic chattel paper if a system employed for evidencing the transfer of interest 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:

(i) A single authoritative copy of the record or records exists which is unique, identifiable and, except as otherwise provided in paragraphs (iv), (v) and (vi), unalterable;

(ii) The authoritative copy identifies the secured party as the assignee of the record or records;

(iii) The authoritative copy is communicated to and maintained by the secured party or its designated custodian;

(iv) 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;

(v) 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

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


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