(a) A secured party has control of electronic chattel paper if a system employed for evidencing the transfer of interests in the chattel paper reliably establishes the secured party as the person to which the chattel paper was assigned.
(b) A system satisfies subdivision (a) if the record or records comprising the chattel paper are created, stored, and assigned in such a manner that each of the following conditions is satisfied:
(1) A single authoritative copy of the record or records exists which is unique, identifiable, and, except as otherwise provided in paragraphs (4), (5), and (6), unalterable.
(2) The authoritative copy identifies the secured party as the assignee of the record or records.
(3) The authoritative copy is communicated to and maintained by the secured party 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 secured party.
(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.
(6) Any amendment of the authoritative copy is readily identifiable as authorized or unauthorized.
(Amended by Stats. 2013, Ch. 531, Sec. 8. Effective January 1, 2014. Operative July 1, 2014, by Sec. 28 of Ch. 531.)
Last modified: October 25, 2018