57A-9-105. Control of electronic copy of record evidencing chattel paper.(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.(b) A system satisfies subsection (a) 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), 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 sent 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) 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:(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), 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) Subject to subsection (e), a power is exclusive under subsection (c)(3)(A) and (B) even assignee of the authoritative electronic copy; and(B)Transfer control of the authoritative electronic copy.(d) Subject to subsection (e), a power is exclusive under subsection (c)(3)(A) and (B) 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) A power of a purchaser is not shared with another person under subsection (d)(2) 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) If a purchaser has the powers specified in subsection (c)(3)(A) and (B), the powers are presumed to be exclusive.(g) A purchaser has control of an authoritative electronic copy of a record evidencing chattel paper has the powers specified in subsection (c)(3)(A) and (B), the powers are presumed to be exclusive.(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:(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. Source: SL 2000, ch 231; SL 2012, ch 238, §2, eff. July 1, 2013; SL 2024, ch 198, §45.
South Dakota Legal Code