Indiana § 26-1-12-107 - Governing local law; determination of controllable electronic record's jurisdiction; law governing rights acquired by purchaser or qualifying purchaser

§ 26-1-12-107. Governing local law; determination of controllable electronic record's jurisdiction; law governing rights acquired by purchaser or qualifying purchaser

Sec. 107. (a) Except as provided in subsection (b), the local law of an electronic record's jurisdiction governs a matter covered by this chapter.

(b) For a controllable electronic record that evidences a controllable account or a controllable payment intangible, the local law of the controllable electronic record's jurisdiction governs a matter covered by section 106 of this chapter unless an effective agreement determines that the local law of another jurisdiction governs.

(c) The following rules determine a controllable electronic record's jurisdiction under this section:

(1) If the controllable electronic record, or a record that is attached to or logically associated with the controllable electronic record and that is readily available for review, expressly provides that a particular jurisdiction is the controllable electronic record's jurisdiction for purposes of this chapter or IC 26-1, that jurisdiction is the controllable electronic record's jurisdiction.

(2) If subdivision (1) does not apply, and the rules of the system in which the controllable electronic record is recorded are readily available for review and expressly provide that a particular jurisdiction is the controllable electronic record's jurisdiction for purposes of this chapter or IC 26-1, that jurisdiction is the controllable electronic record's jurisdiction.

(3) If subdivisions (1) and (2) do not apply, and the controllable electronic record, or a record that is attached to or logically associated with the controllable electronic record and that is readily available for review, expressly provides that the controllable electronic record is governed by the law of a particular jurisdiction, that jurisdiction is the controllable electronic record's jurisdiction.

(4) If subdivisions (1) through (3) do not apply, and the rules of the system in which the controllable electronic record is recorded are readily available for review and expressly provide that the controllable electronic record or the system is governed by the law of a particular jurisdiction, that jurisdiction is the controllable electronic record's jurisdiction.

(5) If subdivisions (1) through (4) do not apply, the controllable electronic record's jurisdiction is the District of Columbia.

(d) If subsection (c)(5) applies and this chapter is not in effect in the District of Columbia without material modification, the governing law for a matter covered by this chapter is the law of the District of Columbia as though this chapter were in effect in the District of Columbia without material modification.

(e) To the extent that subsections (a) and (b) provide that the local law of the controllable electronic record's jurisdiction governs a matter covered by this chapter, that law governs even if the matter or a transaction to which the matter relates does not bear any relation to the controllable record's jurisdiction.

(f) The rights acquired under section 104 of this chapter by a purchaser or a qualifying purchaser are governed by the law applicable under this section at the time of purchase.

As added by P.L.199-2023, SEC.90.

IC 26-1-12.5Chapter 12.5. Transitional Provisions For Uniform Commercial Code Amendments (2022)

26-1-12.5-101Citation of statute 26-1-12.5-102Definitions; applicability of definitions concerning secured transactions; applicability of general definitions and principles of construction and interpretation 26-1-12.5-201Validity of transactions entered into before July 1, 2023 26-1-12.5-301Transaction, lien, or interest entered into, created, or acquired before July 1, 2023; validity; applicability of act; existing actions, cases, or proceedings not affected 26-1-12.5-302Security interest enforceable and perfected on June 30, 2023; conditions and time frame for continued enforceability and perfection after June 30, 2023 26-1-12.5-303Security interest enforceable but unperfected on June 30, 2023; conditions and time frame for continued enforceability; conditions and effective date for perfection 26-1-12.5-304Action other than filing taken before July 1, 2023, to perfect security interest; perfection effective until adjustment date; conditions for effectiveness of financing statement filed before July 1, 2023, to perfect security interest; sufficiency of action taken before July 1, 2023, with respect to enforceability 26-1-12.5-305Determination of priority of conflicting claims to collateral 26-1-12.5-306Determination of priority of conflicting claims to controllable accounts, controllable electronic records, and controllable payment intangibles

IC 26-1-12.5-101Citation of statute Sec. 101. This chapter may be cited as Transitional Provisions for Uniform Commercial Code Amendments (2022).

As added by P.L.199-2023, SEC.91.

IC 26-1-12.5-102Definitions; applicability of definitions concerning secured transactions; applicability of general definitions and principles of construction and interpretation Sec. 102. (a) In this chapter, the following terms have the following meanings:

(1) The following terms have the following meanings:

(A) "Act" refers to the amendments to IC 26-1 that:

(i) were made during the 2023 regular session of the general assembly; and

(ii) took effect July 1, 2023.

(B) "Adjustment date" means July 1, 2025.

(2) "Chapter 12" refers to IC 26-1-12.

(3) "Chapter 12 property" means a controllable account, a controllable electronic record, or a controllable payment intangible.

(b) The following definitions in other chapters of IC 26-1 apply to this chapter:

"Controllable account". IC 26-1-9.1-102.

"Controllable electronic record". IC 26-1-12-102.

"Controllable payment intangible". IC 26-1-9.1-102.

"Financing statement". IC 26-1-9.1-102.

(c) IC 26-1-1 contains general definitions and principles of construction and interpretation that apply throughout this chapter.

As added by P.L.199-2023, SEC.91.

IC 26-1-12.5-201Validity of transactions entered into before July 1, 2023 Sec. 201. Except as provided in sections 301 through 306 of this chapter, a transaction validly entered into before July 1, 2023, and the rights, duties, and interests flowing from the transaction remain valid after June 30, 2023, and may be terminated, completed, consummated, or enforced as required or permitted by law other than IC 26-1 or, if applicable, by IC 26-1 as though the act had not taken effect.

As added by P.L.199-2023, SEC.91.

IC 26-1-12.5-301Transaction, lien, or interest entered into, created, or acquired before July 1, 2023; validity; applicability of act; existing actions, cases, or proceedings not affected Sec. 301. (a) Except as otherwise provided in this section or in sections 302 through 306 of this chapter:

(1) IC 26-1-9.1, as amended by the act; and

(2) IC 26-1-12;

apply to a transaction, lien, or interest in property, even if the transaction, lien, or interest was entered into, created, or acquired before July 1, 2023.

(b) Except as provided in subsection (c) and in sections 302 through 306 of this chapter:

(1) a transaction, lien, or interest in property that was validly entered into, created, or transferred before July 1, 2023, and was not governed by IC 26-1, but would be subject to:

(A) IC 26-1-9.1, as amended by the act; or

(B) IC 26-1-12;

if it had been entered into, created, or transferred on or after July 1, 2023, including the rights, duties, and interests flowing from the transaction, lien, or interest, remain valid on and after July 1, 2023; and

(2) the transaction, lien, or interest may be terminated, completed, consummated, and enforced as required or permitted by:

(A) the act; or

(B) the law that would apply if the act had not taken effect.

(c) The act does not affect an action, case, or proceeding commenced before July 1, 2023.

As added by P.L.199-2023, SEC.91.

IC 26-1-12.5-302Security interest enforceable and perfected on June 30, 2023; conditions and time frame for continued enforceability and perfection after June 30, 2023 Sec. 302. (a) A security interest that is enforceable and perfected on June 30, 2023, is a perfected security interest under the act if, on July 1, 2023, the requirements for enforceability and perfection under the act are satisfied without further action.

(b) If a security interest is enforceable and effective on June 30, 2023, but the requirements for enforceability and perfection under the act are not satisfied on July 1, 2023, the security interest:

(1) is a perfected security interest until the earlier of:

(A) the time perfection would have ceased under IC 26-1 as in effect on June 30, 2023; or

(B) the adjustment date;

(2) remains enforceable on or after the time specified in subdivision (1) only if the security interest satisfies the requirements for enforceability under IC 26-1-9.1-203, as amended by the act, before the adjustment date; and

(3) remains perfected on or after the time specified in subdivision (1) only if the requirements for perfection under the act are satisfied before the time specified in subdivision (1).

As added by P.L.199-2023, SEC.91.

IC 26-1-12.5-303Security interest enforceable but unperfected on June 30, 2023; conditions and time frame for continued enforceability; conditions and effective date for perfection Sec. 303. A security interest that is enforceable on June 30, 2023, but is unperfected on June 30, 2023:

(1) remains an enforceable security interest until the adjustment date;

(2) remains enforceable on or after the adjustment date if the security interest becomes enforceable under IC 26-1-9.1-203, as amended by the act, on July 1, 2023, or before the adjustment date; and

(3) becomes perfected;

(A) without further action on July 1, 2023, if the requirements for perfection under the act are satisfied before or on July 1, 2023; or

(B) when the requirements for perfection under the act are satisfied if the requirements are satisfied after July 1, 2023.

As added by P.L.199-2023, SEC.91.

IC 26-1-12.5-304Action other than filing taken before July 1, 2023, to perfect security interest; perfection effective until adjustment date; conditions for effectiveness of financing statement filed before July 1, 2023, to perfect security interest; sufficiency of action taken before July 1, 2023, with respect to enforceability Sec. 304. (a) If action, other than the filing of a financing statement, is taken before July 1, 2023, and the action would have resulted in perfection of a security interest had the security interest become enforceable before July 1, 2023, the action is effective to perfect a security interest that attaches under the act before the adjustment date. An attached security interest becomes unperfected on the adjustment date unless the security interest becomes a perfected security interest under the act before the adjustment date.

(b) The filing of a financing statement before July 1, 2023, is effective to perfect a security interest on July 1, 2023, to the extent the filing would satisfy the requirements for perfection under the act.

(c) The taking of an action before July 1, 2023, is sufficient for the enforceability of a security interest on July 1, 2023, if the action would satisfy the requirements for enforceability under the act.

As added by P.L.199-2023, SEC.91.

IC 26-1-12.5-305Determination of priority of conflicting claims to collateral Sec. 305. (a) Subject to subsections (b) and (c), the act determines the priority of conflicting claims to collateral.

(b) Subject to subsection (c), if the priorities of claims to collateral were established before July 1, 2023, IC 26-1-9.1 as in effect before July 1, 2023, determines priority.

(c) On the adjustment date, to the extent the priorities determined by IC 26-1-9.1, as amended by the act, modify the priorities established before July 1, 2023, the priorities of claims to chapter 12 property established before July 1, 2023, cease to apply.

As added by P.L.199-2023, SEC.91.

IC 26-1-12.5-306Determination of priority of conflicting claims to controllable accounts, controllable electronic records, and controllable payment intangibles Sec. 306. (a) Subject to subsections (b) and (c), chapter 12 determines the priority of conflicting claims to chapter 12 property when the priority rules of IC 26-1-9.1, as amended by the act, do not apply.

(b) Subject to subsection (c), when the priority rules of IC 26-1-9.1, as amended by the act, do not apply and the priorities of claims to chapter 12 property were established before July 1, 2023, law other than chapter 12 determines priority.

(c) When the priority rules of IC 26-1-9.1, as amended by the act, do not apply, to the extent the priorities determined by the act modify the priorities established before July 1, 2023, the priorities of claims to chapter 12 property established before July 1, 2023, cease to apply on the adjustment date.

As added by P.L.199-2023, SEC.91.

IC 26-2ARTICLE 2. COMMERCIAL TRANSACTIONS

Ch. 1.Liability of Buyer for Goods Bought From Unlicensed Seller Ch. 2.Mortgage of Household Goods Ch. 3.Negotiable Instruments Ch. 4.Agreements to Pay Attorney's Fees Ch. 5.Construction or Design Contracts; Indemnity Agreements Invalid Ch. 6.Service for Audio or Visual Entertainment Products Ch. 7.Penalties for Stopping Payments or Permitting Dishonor of Checks and Drafts Ch. 8.Uniform Electronic Transactions Act Ch. 9.Credit Agreements Ch. 10.Repossessing Motor Vehicles or Watercraft Ch. 11.Collateral Recovery Agencies

IC 26-2-1Chapter 1. Liability of Buyer for Goods Bought From Unlicensed Seller

26-2-1-1Liability of unlicensed buyer for goods purchased to conduct business requiring license