Utah Code § 70A-9a-105 — Utah Code / Title 70A / Chapter 70A-9a / § 70A-9a-105
§ 70A-9a-105. Control of electronic copy of record evidencing chattel paper.
Status: in_force

(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 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 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 to 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: (i) prevent others from adding or changing an identified assignee of the authoritative electronic copy; and (ii) transfer control of the authoritative electronic copy. (4) Subject to Subsection (5), a power is exclusive under Subsections (3)(c)(i) and (ii) 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 Subsection (4)(a) and the purchaser's power is not exclusive if: (a) the purchaser can exercise the power only if the power also is exercised by the other person; and (b) the other person: (i) can exercise the power without exercise of the power by the purchaser; or (ii) is the transferor to the purchaser of an interest in the chattel paper. (6) If a purchaser has the powers specified in Subsections (3)(c)(i) and (ii), 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.