2024 CODE OF GEORGIA
Title 11 - COMMERCIAL CODE (§§ 11-1-101 — 11-13-102)
Article 9 - SECURED TRANSACTIONS (§§ 11-9-101 — 11-9-809)
Part 1 - GENERAL PROVISIONS (§§ 11-9-101 — 11-9-111)
Subpart 1 - SHORT TITLE, DEFINITIONS, AND GENERAL CONCEPTS (§§ 11-9-101 — 11-9-108)
Section 11-9-105 - Control of electronic copy of record evidencing chattel paper

• (a)General rule: control of electronic copy of record evidencing chattel paper. 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.

• (b)Single authoritative copy. A system satisfies subsection (a) of this Code section if the record or records evidencing the chattel paper are created, stored, and assigned in a manner that:
  • (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) of this subsection, unalterable;
  • (2) The authoritative copy identifies the purchaser as the assignee of the record or records;
  • (3) The authoritative copy is communicated to and maintained by the purchaser or its designated custodian;
  • (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;
  • (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
  • (6) Any amendment of the authoritative copy is readily identifiable as authorized or unauthorized.

• (c)One or more authoritative copies. A system satisfies subsection (a) of this Code section, 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:
  • (1) Enables the purchaser readily to identify each electronic copy as either an authoritative copy or a nonauthoritative copy;
  • (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
  • (3) Gives the purchaser exclusive power, subject to subsection (d) of this Code section, to:
    • (A) Prevent others from adding or changing an identified assignee of the authoritative electronic copy; and
    • (B) Transfer control of the authoritative electronic copy.

• (d)Meaning of exclusive. Subject to subsection (e) of this Code section, a power is exclusive under subparagraphs (c)(3)(A) and (c)(3)(B) of this Code section even if:
  • (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
  • (2) The power is shared with another person.

• (e)When power not shared with another person. A power of a purchaser is not shared with another person under paragraph (2) of subsection (d) of this Code section and the purchaser's power is not exclusive if:
  • (1) The purchaser can exercise the power only if the power also is exercised by the other person; and
  • (2) The other person:
    • (A) Can exercise the power without exercise of the power by the purchaser; or
    • (B) Is the transferor to the purchaser of an interest in the chattel paper.

• (f)Presumption of exclusivity of certain powers. If a purchaser has the powers specified in subparagraphs (c)(3)(A) and (c)(3)(B) of this Code section, the powers are presumed to be exclusive.

• (g)Obtaining control through another person. 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:
  • (1) Has control of the authoritative electronic copy and acknowledges that it has control on behalf of the purchaser; or
  • (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.

Amended by 2024 Ga. Laws 600,§ 5-42, eff. 7/1/2024.

Amended by 2013 Ga. Laws 223,§ 2, eff. 7/1/2013.

Added by 2001 Ga. Laws 191, § 1, eff. 7/1/2001.