{"data":{"id":"us-nd/n.d.-cent.-code-41-09-05","jurisdiction":"us-nd","citation":"N.D. Cent. Code § 41-09-05","heading":"(9-105) Control of electronic copy of record evidencing chattel paper","body":"1.A purchaser has control of an authoritative electronic copy of a record evidencing chattel paper if a system employed for evidencing the assignment of interests in the chattel paper reliably establishes the purchaser as the person to which the authoritative electronic copy was assigned.\n2.A system satisfies subsection 1 if the record or records evidencing the chattel paper are created, stored, and assigned in such a manner that:\na.A single authoritative copy of the record or records exists which is unique, identifiable, and, except as otherwise provided in subdivisions d, e, and f, unalterable;\nb.The authoritative copy identifies the purchaser as the assignee of the record or records;\nc.The authoritative copy is communicated to and maintained by the purchaser or its designated custodian;\nd.Copies or amendments that add or change an identified assignee of the authoritative copy can be made only with the consent of the purchaser;\ne.Each copy of the authoritative copy and any copy of a copy is readily identifiable as a copy that is not the authoritative copy; and\nf.Any amendment of the authoritative copy is readily identifiable as authorized or unauthorized.\n3.A system satisfies subsection 1, and a purchaser has control of an authoritative electronic copy of a record evidencing chattel paper, if the electronic copy, a record attached to or logically associated with the electronic copy, or a system in which the electronic copy is recorded:\na.Enables the purchaser readily to identify each electronic copy as either an authoritative copy or a nonauthoritative copy;\nb.Enables the purchaser readily to identify itself in any way, including by name, identifying number, cryptographic key, office, or account number, as the assignee of the authoritative electronic copy; and\nc.Gives the purchaser exclusive power, subject to subsection 4, to:\n(1)Prevent others from adding or changing an identified assignee of the authoritative electronic copy; and\n(2)Transfer control of the authoritative electronic copy.\n4.Subject to subsection 5, a power is exclusive under subdivision c of subsection 3 even if:\na.The authoritative electronic copy, a record attached to or logically associated with the authoritative electronic copy, or a system in which the authoritative electronic copy is recorded limits the use of the authoritative electronic copy or has a protocol programmed to cause a change, including a transfer or loss of control; or\nb.The power is shared with another person.\n5.A power of a purchaser is not shared with another person under subdivision b of subsection 4 and the purchaser's power is not exclusive if:\na.The purchaser can exercise the power only if the power also is exercised by the other person; and\nb.The other person:\n(1)Can exercise the power without exercise of the power by the purchaser; or\n(2)Is the transferor to the purchaser of an interest in the chattel paper.\n6.If a purchaser has the powers specified in subdivision c of subsection 3, the powers are presumed to be exclusive.\n7.A purchaser has control of an authoritative electronic copy of a record evidencing chattel paper if another person, other than the transferor to the purchaser of an interest in the chattel paper:\na.Has control of the authoritative electronic copy and acknowledges that it has control on behalf of the purchaser; or\nb.Obtains control of the authoritative electronic copy after having acknowledged that it will obtain control of the electronic copy on behalf of the purchaser.","path":["Title 41 Uniform Commercial Code","Chapter 41-09 Secured Transactions"],"source_url":"https://ndlegis.gov/cencode/t41c09.pdf","current_through":"2026-07-31T11:12:02","vintage":"","retrieved_at":"2026-09-02T21:04:14Z","sha256":"acdc744aead317e5544bcad1e44a0fb50ee1d2b2a3bb84d00da16907c3894aa4","source_id":"us-nd","stale":true,"prev":"us-nd/n.d.-cent.-code-41-09-04","next":"us-nd/n.d.-cent.-code-41-09-05.1"},"notice":"GroundRules: Original legal text. Not legal advice."}