2023 New Mexico Statutes › Chapter 55 - Uniform Commercial Code › Article 9 - Secured Transactions › Part 1 - GENERAL PROVISIONS › Subpart 1 - SHORT TITLE, DEFINITIONS, ANDGENERAL CONCEPTS › Section 55-9-105 - Control of electronic copy of record evidencing chattel paper. (Effective January 1, 2024.)

(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) of this section 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 that is unique, identifiable and, except as otherwise provided in Paragraphs (4), (5) and (6) of this subsection, 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) of this section, 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) of this section, 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) of this section, a power is exclusive under Subparagraphs (A) and (B) of Paragraph (3) of Subsection (c) of this section 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 Paragraph (2) of Subsection (d) of this section 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 Subparagraphs (A) and (B) of Paragraph (3) of Subsection (c) of this section, 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 electronic copy on behalf of the purchaser.
History:
1978 Comp., § 55-9-105, enacted by Laws 2001, ch. 139, § 5; 2013, ch. 137, § 4; repealed and reenacted by Laws 2023, ch. 142, § 45.
ANNOTATIONS
Repeals and reenactments.
— Laws 2023, ch. 142, § 45 repealed former 55-9-105 NMSA 1978 and enacted a new section, effective January 1, 2024.