{"data":{"id":"us-sd/sdcl-57a-9-105","jurisdiction":"us-sd","citation":"SDCL § 57A-9-105","heading":"Control of electronic copy of record evidencing chattel paper.","body":"(a) 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.\n(b) A system satisfies subsection (a) if the record or records evidencing the chattel paper are created, stored, and assigned in a manner that:\n(1) A single authoritative copy of the record or records exists which is unique, identifiable, and, except as otherwise provided in paragraphs (4), (5), and (6), unalterable;\n(2) The authoritative copy identifies the purchaser as the assignee of the record or records;\n(3) The authoritative copy is communicated to and maintained by the purchaser or its designated custodian;\n(4) Copies or amendments that add or change an identified assignee of the authoritative copy can be made only with the consent of the purchaser;\n(5) 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\n(6) Any amendment of the authoritative copy is readily identifiable as authorized or unauthorized.\n(c) A system satisfies subsection (a), 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:\n(1) Enables the purchaser readily to identify each electronic copy as either an authoritative copy or a nonauthoritative copy;\n(2) 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\n(3) Gives the purchaser exclusive power, subject to subsection (d), to:\n(A) Prevent others from adding or changing an identified assignee of the authoritative electronic copy; and\n(B) Transfer control of the authoritative electronic copy.\n(d) Subject to subsection (e), a power is exclusive under subsection (c)(3)(A) and (B) even if:\n(1) 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\n(2) The power is shared with another person.\n(e) A power of a purchaser is not shared with another person under subsection (d)(2) and the purchaser's power is not exclusive if:\n(1) The purchaser can exercise the power only if the power also is exercised by the other person; and\n(2) The other person:\n(A) Can exercise the power without exercise of the power by the purchaser; or\n(B) Is the transferor to the purchaser of an interest in the chattel paper.\n(f) If a purchaser has the powers specified in subsection (c)(3)(A) and (B), the powers are presumed to be exclusive.\n(g) 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:\n(1) Has control of the authoritative electronic copy and acknowledges that it has control on behalf of the purchaser; or\n(2) Obtains control of the authoritative electronic copy after having acknowledged that it will obtain control of the electronic copy on behalf of the purchaser.\nSource: SL 2000, ch 231; SL 2012, ch 238, § 2, eff. July 1, 2013; SL 2024, ch 198, § 45.","path":["TITLE 57A. UNIFORM COMMERCIAL CODE","CHAPTER 57A-9. SECURED TRANSACTIONS"],"source_url":"https://sdlegislature.gov/Statutes/57A-9-105","current_through":"2026-08-31","vintage":"","retrieved_at":"2026-09-03T15:18:57Z","sha256":"cf58eaf990283887f4a7e7acedfcda1d83c451865c947c52aaba6a2ae44ddb8f","source_id":"us-sd","stale":true,"prev":"us-sd/sdcl-57a-9-104","next":"us-sd/sdcl-57a-9-105.1"},"notice":"GroundRules: Original legal text. Not legal advice."}