{"data":{"id":"us-ky/krs-355.9-105","jurisdiction":"us-ky","citation":"KRS 355.9-105","heading":"Control of electronic copy of record evidencing chattel paper.","body":"(1) A purchaser has control of an authoritative electronic copy of a record evidencing\nchattel paper if a system employed for evidencing the assignment of interests in the\nchattel paper reliably establishes the purchaser as the person to which the\nauthoritative electronic copy was assigned.\n(2) A system satisfies subsection (1) of this section if the record or records evidencing\nthe chattel paper are created, stored, and assigned in a manner that:\n(a) A single authoritative copy of the record or records exists which is unique,\nidentifiable, and, except as otherwise provided in paragraphs (d), (e), and (f)\nof this subsection, unalterable;\n(b) The authoritative copy identifies the purchaser as the assignee of the record or\nrecords;\n(c) The authoritative copy is communicated to and maintained by the purchaser\nor its designated custodian;\n(d) Copies or amendments that add or change an identified assignee of the\nauthoritative copy can be made only with the consent of the purchaser;\n(e) Each copy of the authoritative copy and any copy of a copy is readily\nidentifiable as a copy that is not the authoritative copy; and\n(f) Any amendment of the authoritative copy is readily identifiabl e as authorized\nor unauthorized.\n(3) A system satisfies subsection (1) of this section, and a purchaser has control of an\nauthoritative electronic copy of a record evidencing chattel paper, if the electronic\ncopy, a record attached to or logically associat ed with the electronic copy, or a\nsystem in which the electronic copy is recorded:\n(a) Enables the purchaser to readily identify each electronic copy as either an\nauthoritative copy or a nonauthoritative copy;\n(b) Enables the purchaser to readily identify itself in any way, including by name,\nidentifying number, cryptographic key, office, or account number, as the\nassignee of the authoritative electronic copy; and\n(c) Gives the purchaser exclusive power, subject to subsection (4) of this section,\nto:\n1. Prevent others from adding or changing an identified assignee of the\nauthoritative electronic copy; and\n2. Transfer control of the authoritative electronic copy.\n(4) Subject to subsection (5) of this section, a power is exclusive under subsection\n(3)(c)1. and 2. of this section even if:\n(a) The authoritative electronic copy, a record attached to or logically associated\nwith the authoritative electronic copy, or a system in which the authoritative\nelectronic copy is rec orded limits the use of the authoritative electronic copy\nor has a protocol programmed to cause a change, including a transfer or loss\nof control; or\n(b) The power is shared with another person.\n(5) A power of a purchaser is not shared with another person under subsection (4)(b) of\nthis section and the purchaser's power is not exclusive if:\n(a) The purchaser can exercise the power only if the power also is exercised by\nthe other person; and\n(b) The other person:\n1. Can exercise the power without exercise of  the power by the purchaser;\nor\n2. Is the transferor to the purchaser of an interest in the chattel paper.\n(6) If a purchaser has the powers specified in subsection (3)(c)1. and 2. of this section,\nthe powers are presumed to be exclusive.\n(7) A purchaser h as control of an authoritative electronic copy of a record evidencing\nchattel paper if another person, other than the transferor to the purchaser of an\ninterest in the chattel paper:\n(a) Has control of the authoritative electronic copy and acknowledges tha t it has\ncontrol on behalf of the purchaser; or\n(b) Obtains control of the authoritative electronic copy after having\nacknowledged that it will obtain control of the electronic copy on behalf of\nthe purchaser.","path":[],"source_url":"https://apps.legislature.ky.gov/law/statutes/statute.aspx?id=55670","current_through":"Includes enactments through the 2026 Regular Session","vintage":"09/05/2026","retrieved_at":"2026-09-05T20:58:47Z","sha256":"8eafb82c4b6d744adc5cf1463c10ffa055af86fa6131c2e4f8f5d184eac1ff00","source_id":"us-ky","stale":false,"prev":"us-ky/krs-355.9-104","next":"us-ky/krs-355.9-1051"},"notice":"GroundRules: Original legal text. Not legal advice."}