{"data":{"id":"us-ky/krs-355.12-105","jurisdiction":"us-ky","citation":"KRS 355.12-105","heading":"Control of controllable electronic record.","body":"(1) A person has control of a controllable electronic record if the electronic record, a\nrecord attached to or logically associated with the electronic record, or a system in\nwhich the electronic record is recorded:\n(a) Gives the person:\n1. Power to avail itse lf of substantially all the benefit from the electronic\nrecord; and\n2. Exclusive power, subject to subsection (2) of this section, to:\na. Prevent others from availing themselves of substantially all the\nbenefit from the electronic record; and\nb. Transfer control of the electronic record to another person or cause\nanother person to obtain control of another controllable electronic\nrecord as a result of the transfer of the electronic record; and\n(b) Enables the person to readily identify itself in any way, in cluding by name,\nidentifying number, cryptographic key, office, or account number, as having\nthe powers specified in paragraph (a) of this subsection.\n(2) Subject to subsection (3) of this section, a power is exclusive under subsection\n(1)(a)2.a. and b. of this section even if:\n(a) The controllable electronic record, a record attached to or logically associated\nwith the electronic record, or a system in which the electronic record is\nrecorded limits the use of the electronic record or has a protocol programmed\nto cause a change, incl uding a transfer or loss of control or a modification of\nbenefits afforded by the electronic record; or\n(b) The power is shared with another person.\n(3) A power of a person is not shared with another person under subsection (2)(b) of\nthis section and the person's power is not exclusive if:\n(a) The person can exercise the power only if the power also is exercised by the\nother person; and\n(b) The other person:\n1. Can exercise the power without exercise of the power by the person; or\n2. Is the transferor to the person of an interest in the controllable electronic\nrecord or a controllable account or controllable payment intangible\nevidenced by the controllable electronic record.\n(4) If a person has the powers specified in subsection (1)(a)2.a. and b. of this sec tion,\nthe powers are presumed to be exclusive.\n(5) A person has control of a controllable electronic record if another person, other than\nthe transferor to the person of an interest in the controllable electronic record or a\ncontrollable account or control lable payment intangible evidenced by the\ncontrollable electronic record:\n(a) Has control of the electronic record and acknowledges that it has control on\nbehalf of the person; or\n(b) Obtains control of the electronic record after having acknowledged that it will\nobtain control of the electronic record on behalf of the person.\n(6) A person that has control under this section is not required to acknowledge that it\nhas control on behalf of another person.\n(7) If a person acknowledges that it has or will obtai n control on behalf of another\nperson, unless the person otherwise agrees or law other than this article or Article 9\nof this chapter otherwise provides, the person does not owe any duty to the other\nperson and is not required to confirm acknowledgment to any other person.","path":[],"source_url":"https://apps.legislature.ky.gov/law/statutes/statute.aspx?id=55722","current_through":"Includes enactments through the 2026 Regular Session","vintage":"09/05/2026","retrieved_at":"2026-09-05T20:58:49Z","sha256":"69909aefb3eaeb864296c609c4f4e579821c3ec017e92b006acf9026bacfa033","source_id":"us-ky","stale":false,"prev":"us-ky/krs-355.12-104","next":"us-ky/krs-355.12-106"},"notice":"GroundRules: Original legal text. Not legal advice."}