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 55-9-105A - Control of electronic money. (Effective January 1, 2024.)

(a) A person has control of electronic money if:
(1) the electronic money, a record attached to or logically associated with the electronic money or a system in which the electronic money is recorded gives the person:
(A) power to avail itself of substantially all the benefit from the electronic money; and
(B) exclusive power, subject to Subsection (b) of this section, to:
(i) prevent others from availing themselves of substantially all the benefit from the electronic money; and
(ii) transfer control of the electronic money to another person or cause another person to obtain control of other electronic money as a result of the transfer of the electronic money; and
(2) the electronic money, a record attached to or logically associated with the electronic money or a system in which the electronic money is recorded enables the person readily to identify itself in any way, including by name, identifying number, cryptographic key, office or account number, as having the powers under Paragraph (1) of this subsection.
(b) Subject to Subsection (c) of this section, a power is exclusive under Items (i) and (ii) of Subparagraph (B) of Paragraph (1) of Subsection (a) of this section even if:
(1) the electronic money, a record attached to or logically associated with the electronic money or a system in which the electronic money is recorded limits the use of the electronic money 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.
(c) A power of a person is not shared with another person under Paragraph (2) of Subsection (b) of this section and the person's power is not exclusive if:
(1) the person can exercise the power only if the power is also exercised by the other person; and
(2) the other person:
(A) can exercise the power without exercise of the power by the person; or
(B) is the transferor to the person of an interest in the electronic money.
(d) If a person has the powers specified in Items (i) and (ii) of Subparagraph (B) of Paragraph (1) of Subsection (a) of this section, the powers are presumed to be exclusive.
(e) A person has control of electronic money if another person, other than the transferor to the person of an interest in the electronic money:
(1) has control of the electronic money and acknowledges that it has control on behalf of the person; or
(2) obtains control of the electronic money after having acknowledged that it will obtain control of the electronic money on behalf of the person.
History:
1978 Comp., § 55-9-105A, enacted by Laws 2023, ch. 142, § 46.
OFFICIAL COMMENTS
UCC Official Comments by ALI & the NCCUSL. Reproduced with permission of the PEB for the UCC. All rights reserved.
1.
"Control" of Electronic Money: In General.
A security interest in electronic money as original collateral may be perfected only by control pursuant to this section. Section 9-312(b)(4) [55-9-312 NMSA 1978]. These requirements for obtaining control generally track those in Section 12-105 [55-12-105 NMSA 1978] for controllable electronic records. See generally Section 12-105, Comments.
2.
Control on Behalf of Another Person.
Subsection (e) provides for a person to obtain control of electronic money by virtue of the acknowledgment by another person in control of the electronic money. It follows revisions to the corresponding provisions for control of electronic documents of title (Section 7-106(g))[55-7-106 NMSA 1978], control of a security entitlement (Section 8-106(d)(3)), control of deposit accounts (Section 9-104(a)(4)) [55-9-104 NMSA 1978], control of an electronic copy of a record evidencing chattel paper (Section 9-105(g)) [55-9-105 NMSA 1978], and control of controllable electronic records (Section 12-105(e)). For a brief discussion, see Section 12-105 [55-12-105 NMSA 1978], Comment 8.
Section 9-107B(a) [55-9-107 NMSA 1978] makes clear that a person that has control under this section has no duty to acknowledge that it has or will obtain control on behalf of another person. Arrangements for a person to acknowledge that it has or will obtain control on behalf of another person are not standardized. Accordingly, Section 9-107B(b) leaves to the agreement of the parties and to any other applicable law any duties of a person that does acknowledge that it has or will obtain control on behalf of another person and provides that a person making an acknowledgment is not required to confirm the acknowledgment to another person.
ANNOTATIONS
Effective dates.
— Laws 2023, ch. 142, § 112 made Laws 2023, ch. 142, § 46 effective January 1, 2024.