(1) Perfection by possession creates a possessory security interest under section 28-9-301, Idaho Code.
(2)  A security interest held by a secured party having possession or control has priority over a security interest held by a secured party that does not have possession or control, as applicable. Other provisions of law relating to perfection and priority of security interests, including section 28-9-207, Idaho Code, and priority of control over delivery, shall apply, except that section 28-9-322(a)(1) and (b), Idaho Code, shall not apply.

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Terms Used In Idaho Code 28-5306

  • Adverse claim: means a claimant that has a property interest in a virtual currency or a right to payment evidenced by the virtual currency. See Idaho Code 28-5303
  • Control: means the ability to exclude others from the use of property and includes the following:
Idaho Code 28-5303
  • person: includes a corporation as well as a natural person;
  • Idaho Code 73-114
  • Possession: includes use of a private key, a multi-signature arrangement exclusive to the secured party, a smart contract as defined in this section, or any substantially similar analogue. See Idaho Code 28-5303
  • Virtual currency: means a digital asset that is used as a medium of exchange, unit of account, or store of value. See Idaho Code 28-5303
  • (3)  A person that acquires an interest in and obtains control of a virtual currency without notice of any adverse claim takes the interest in the virtual currency and in any right to payment evidenced by the virtual currency free of any adverse claim.