Tennessee § 47-9-105 - Control of electronic chattel paper.

§ 47-9-105. Control of electronic chattel paper.

General rule: control of electronic chattel paper. A secured party has control of electronic chattel paper if a system employed for evidencing the transfer of interests in the chattel paper reliably establishes the secured party as the person to which the chattel paper was assigned. Specific facts giving control. A system satisfies subsection (a) if the record or records comprising the chattel paper are created, stored, and assigned in such a manner that: A single authoritative copy of the record or records exists which is unique, identifiable and, except as otherwise provided in subdivisions (b)(4), (5), and (6), unalterable; The authoritative copy identifies the secured party as the assignee of the record or records; The authoritative copy is communicated to and maintained by the secured party or its designated custodian; Copies or amendments that add or change an identified assignee of the authoritative copy can be made only with the consent of the secured party; 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 Any amendment of the authoritative copy is readily identifiable as authorized or unauthorized. Acts 2000, ch. 846, § 1; 2012, ch. 708, § 4. Amendments. The 2012 amendment, effective July 1, 2013, added (a) and redesignated the former introductory paragraph as (b) and subdivisions (1)-(6) as (b)(1)-(6), respectively; and, in present (b), added the subsection heading, substituted “A system satisfies subsection (a)” for “A secured party has control of electronic chattel paper” in the introductory paragraph, substituted “Copies or amendments” for “copies or revisions” at the beginning of (4) and substituted “consent” for “participation” near the end, and, in (6), substituted “Any amendment” for “any revision” and substituted “authorized or unauthorized” for “an authorized or unauthorized revision” at the end. Effective Dates. Acts 2012, ch. 708, § 22. July 1, 2013; provided, that, for the purpose of the secretary of state taking necessary actions for the implementation of the act, the act shall take effect April 11, 2012.