Tex.
Bus. & Com. Code Section 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), and a secured party has control of electronic chattel paper, 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 that is unique, identifiable, and, except as otherwise provided in Subdivisions (4), (5), and (6), 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.
Source:
Section 9.105 — Control of Electronic Chattel Paper, https://statutes.capitol.texas.gov/Docs/BC/htm/BC.9.htm#9.105 (accessed May 26, 2025).
