KRS 355.12-105: Control of controllable electronic record.

(1) A person has control of a controllable electronic record if the electronic record, a

record attached to or logically associated with the electronic record, or a system in

which the electronic record is recorded:

(a) Gives the person:

1. Power to avail itse lf of substantially all the benefit from the electronic

record; and

2. Exclusive power, subject to subsection (2) of this section, to:

a. Prevent others from availing themselves of substantially all the

benefit from the electronic record; and

b. Transfer control of the electronic record to another person or cause

another person to obtain control of another controllable electronic

record as a result of the transfer of the electronic record; and

(b) Enables the person to readily identify itself in any way, in cluding by name,

identifying number, cryptographic key, office, or account number, as having

the powers specified in paragraph (a) of this subsection.

(2) Subject to subsection (3) of this section, a power is exclusive under subsection

(1)(a)2.a. and b. of this section even if:

(a) The controllable electronic record, a record attached to or logically associated

with the electronic record, or a system in which the electronic record is

recorded limits the use of the electronic record or has a protocol programmed

to cause a change, incl uding a transfer or loss of control or a modification of

benefits afforded by the electronic record; or

(b) The power is shared with another person.

(3) A power of a person is not shared with another person under subsection (2)(b) of

this section and the person's power is not exclusive if:

(a) The person can exercise the power only if the power also is exercised by the

other person; and

(b) The other person:

1. Can exercise the power without exercise of the power by the person; or

2. Is the transferor to the person of an interest in the controllable electronic

record or a controllable account or controllable payment intangible

evidenced by the controllable electronic record.

(4) If a person has the powers specified in subsection (1)(a)2.a. and b. of this sec tion,

the powers are presumed to be exclusive.

(5) A person has control of a controllable electronic record if another person, other than

the transferor to the person of an interest in the controllable electronic record or a

controllable account or control lable payment intangible evidenced by the

controllable electronic record:

(a) Has control of the electronic record and acknowledges that it has control on

behalf of the person; or

(b) Obtains control of the electronic record after having acknowledged that it will

obtain control of the electronic record on behalf of the person.

(6) A person that has control under this section is not required to acknowledge that it

has control on behalf of another person.

(7) If a person acknowledges that it has or will obtai n control on behalf of another

person, unless the person otherwise agrees or law other than this article or Article 9

of this chapter otherwise provides, the person does not owe any duty to the other

person and is not required to confirm acknowledgment to any other person.