The Vermont Statutes Online

Title 9A : Uniform Commercial Code

Article 009 : Secured Transactions

• § 9—105. Control of electronic chattel paper

  (a) 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.

  (b) A system satisfies subsection (a) of this section if the record or records comprising the chattel paper are created, stored, and assigned in such a manner that:

  (1) a single authoritative copy of the record or records exists which is unique, identifiable and, except as otherwise provided in subdivisions (4), (5), and (6) of this subsection, unalterable;

  (2) the authoritative copy identifies the secured party as the assignee of the record or records;

  (3) the authoritative copy is communicated to and maintained by the secured party 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 secured party;

  (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. (Added 1999, No. 106 (Adj. Sess.), § 2, eff. July 1, 2001; amended 2013, No. 157 (Adj. Sess.), § 1.)