California Commercial Code 9105.1 – (a) A person has control of electronic money if each of the …
(a) A person has control of electronic money if each of the following conditions is satisfied:
(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 all of the following:
Terms Used In California Commercial Code 9105.1
- Electronic: means relating to technology having electrical, digital, magnetic, wireless, optical, electromagnetic, or similar capabilities. See California Commercial Code 1201
- Money: means a medium of exchange that is currently authorized or adopted by a domestic or foreign government. See California Commercial Code 1201
- Person: means an individual, corporation, business trust, estate, trust, partnership, limited liability company, association, joint venture, government, governmental subdivision, agency, or instrumentality, or any other legal or commercial entity. See California Commercial Code 1201
- Record: means information that is inscribed on a tangible medium or that is stored in an electronic or other medium and is retrievable in perceivable form. See California Commercial Code 1201
(A) Power to avail itself of substantially all the benefit from the electronic money.
(B) Exclusive power, subject to subdivision (b), to do both of the following:
(i) Prevent others from availing themselves of substantially all the benefit from the electronic money.
(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.
(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).
(b) Subject to subdivision (c), a power is exclusive under clauses (i) and (ii) of subparagraph (B) of paragraph (1) of subdivision (a) even if either of the following is true:
(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.
(2) The power is shared with another person.
(c) A power of a person is not shared with another person under paragraph (2) of subdivision (b) and the person’s power is not exclusive if each of the following conditions is satisfied:
(1) The person can exercise the power only if the power also is exercised by the other person.
(2) Either of the following is true:
(A) The other person can exercise the power without exercise of the power by the person.
(B) The other person is the transferor to the person of an interest in the electronic money.
(d) If a person has the powers specified in clauses (i) and (ii) of subparagraph (B) of paragraph (1) of subdivision (a), 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, satisfies either of the following conditions:
(1) The other person has control of the electronic money and acknowledges that it has control on behalf of the person.
(2) The other person obtains control of the electronic money after having acknowledged that it will obtain control of the electronic money on behalf of the person.
(Added by Stats. 2023, Ch. 210, Sec. 27. (SB 95) Effective January 1, 2024.)