2023 Indiana Code › Title 26. Commercial Law › Article 1. Uniform Commercial Code › Chapter 9.1. Secured Transactions › 26-1-9.1-105. Control of Authoritative Electronic Copy of a Record Evidencing Chattel Paper; Exclusive Power; Control on Behalf of Purchaser

Sec. 105. (a) 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.
(b) A system satisfies subsection (a) if the record or records evidencing the chattel paper are created, stored, and assigned in a manner that:
(1) a single authoritative copy of the record or records exists which is unique, identifiable and, except as otherwise provided in subdivisions (4), (5), and (6), unalterable;
(2) the authoritative copy identifies the purchaser as the assignee of the record or records;
(3) the authoritative copy is communicated to and maintained by the purchaser 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 purchaser;
(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.
(c) A system satisfies subsection (a), 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:
(1) enables the purchaser readily to identify each electronic copy as either an authoritative copy or a nonauthoritative copy;
(2) 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
(3) gives the purchaser exclusive power, subject to subsection (d), to:
(A) prevent others from adding or changing an identified assignee of the authoritative electronic copy; and
(B) transfer control of the authoritative electronic copy.
(d) Subject to subsection (e), a power is exclusive under subsection (c)(3)(A) and (c)(3)(B) even if:
(1) 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
(2) the power is shared with another person.
(e) A power of a purchaser is not shared with another person under subsection (d)(2), and the purchaser's power is not exclusive if:
(1) the purchaser can exercise the power only if the power also is exercised by the other person; and
(2) the other person:
(A) can exercise the power without exercise of the power by the purchaser; or
(B) is the transferor to the purchaser of an interest in the chattel paper.
(f) If a purchaser has the powers specified in subsection (c)(3)(A) and (c)(3)(B), the powers are presumed to be exclusive.
(g) 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:
(1) has control of the authoritative electronic copy and acknowledges that it has control on behalf of the purchaser; or
(2) obtains control of the authoritative electronic copy after having acknowledged that it will obtain control of the authoritative electronic copy on behalf of the purchaser.
As added by P.L.57-2000, SEC.45. Amended by P.L.54-2011, SEC.4; P.L.199-2023, SEC.42.