NRS104.9105. Control of electronic chattel paper; employment of system for evidencing transfer of interests in chattel paper.

      1.  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.

      2.  A system satisfies subsection 1 if the record or records comprising the chattel paper are created, stored and assigned in such a manner that:

      (a) A single authoritative copy of the record or records exists which is unique, identifiable and, except as otherwise provided in paragraphs (d), (e) and (f), unalterable;

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

      (c) The authoritative copy is communicated to and maintained by the secured party or its designated custodian;

      (d) 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;

      (e) 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

      (f) Any amendment of the authoritative copy is readily identifiable as authorized or unauthorized.

      (Added to NRS by 1999, 292; A 2011, 617)