(a) General rule: control of electronic chattel paper.  A secured party has control of an 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.

Ask a business law question, get an answer ASAP!
Thousands of highly rated, verified business lawyers.
Click here to chat with a lawyer about your rights.

Terms Used In Rhode Island General Laws 6A-9-105

  • Amendment: A proposal to alter the text of a pending bill or other measure by striking out some of it, by inserting new language, or both. Before an amendment becomes part of the measure, thelegislature must agree to it.
  • person: may be construed to extend to and include co-partnerships and bodies corporate and politic. See Rhode Island General Laws 43-3-6

(b) Specific facts giving control.  A system satisfies subsection (a) if the record or records comprising the chattel paper are created, stored, and assigned in such a manner that:

(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; and

(6)  Any amendment of the authoritative copy is readily identifiable as authorized or unauthorized.

History of Section.
P.L. 2000, ch. 182, § 6; P.L. 2000, ch. 420, § 6; P.L. 2011, ch. 173, § 2; P.L. 2011, ch. 192, § 2.