# N.D. Cent. Code § 41-09-05: 41-09-05. (9-105) Control of electronic copy of record evidencing chattel paper > North Dakota · Statutes · In force URL: https://www.frixlaw.com/law-library/statutes/STATE_ND_T41_C41-09_S41-09-05 ## Section - **Citation:** N.D. Cent. Code § 41-09-05 - **Heading:** 41-09-05. (9-105) Control of electronic copy of record evidencing chattel paper - **Jurisdiction:** North Dakota - **Kind:** Statutes - **Status:** In force - **Text as of:** August 14, 2026 - **Source:** Compiled text - **Location:** ND Code / Title 41 / Chapter 41-09 / Section 41-09-05 ## Text 41-09-05. (9-105) Control of electronic copy of record evidencing chattel paper 1. 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. 2. A system satisfies subsection 1 if the record or records evidencing 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 subdivisions d, e, and f, unalterable; b. The authoritative copy identifies the purchaser as the assignee of the record or records; c. The authoritative copy is communicated to and maintained by the purchaser 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 purchaser; 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. 3. A system satisfies subsection 1, 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: a. Enables the purchaser readily to identify each electronic copy as either an authoritative copy or a nonauthoritative copy; b. 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 c. Gives the purchaser exclusive power, subject to subsection 4, to: (1) Prevent others from adding or changing an identified assignee of the authoritative electronic copy; and (2) Transfer control of the authoritative electronic copy. 4. Subject to subsection 5, a power is exclusive under subdivision c of subsection 3 even if: a. 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 b. The power is shared with another person. 5. A power of a purchaser is not shared with another person under subdivision b of subsection 4 and the purchaser's power is not exclusive if: a. The purchaser can exercise the power only if the power also is exercised by the other person; and b. The other person: (1) Can exercise the power without exercise of the power by the purchaser; or (2) Is the transferor to the purchaser of an interest in the chattel paper. 6. If a purchaser has the powers specified in subdivision c of subsection 3, the powers are presumed to be exclusive. 7. 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: a. Has control of the authoritative electronic copy and acknowledges that it has control on behalf of the purchaser; or b. Obtains control of the authoritative electronic copy after having acknowledged that it will obtain control of the electronic copy on behalf of the purchaser. ## Nearby sections - [N.D. Cent. Code § 41-09-01 41-09-01. (9-101) Short title](https://www.frixlaw.com/law-library/statutes/STATE_ND_T41_C41-09_S41-09-01.md) - [N.D. Cent. Code § 41-09-02 41-09-02. (9-102) Definitions and index of definitions](https://www.frixlaw.com/law-library/statutes/STATE_ND_T41_C41-09_S41-09-02.md) - [N.D. Cent. Code § 41-09-03 41-09-03. 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(9-107) Control of letter-of-credit right](https://www.frixlaw.com/law-library/statutes/STATE_ND_T41_C41-09_S41-09-07.md) - [N.D. Cent. Code § 41-09-07.1 41-09-07.1. (9-107A) Control of controllable electronic record, controllable account, or controllable payment intangible](https://www.frixlaw.com/law-library/statutes/STATE_ND_T41_C41-09_S41-09-07.1.md) - [N.D. Cent. Code § 41-09-07.2 41-09-07.2. (9-107B) No requirement to acknowledge or confirm - No duties](https://www.frixlaw.com/law-library/statutes/STATE_ND_T41_C41-09_S41-09-07.2.md) - [N.D. Cent. Code § 41-09-08 41-09-08. (9-108) Sufficiency of description](https://www.frixlaw.com/law-library/statutes/STATE_ND_T41_C41-09_S41-09-08.md) - [N.D. Cent. Code § 41-09-09 41-09-09. (9-109) Scope](https://www.frixlaw.com/law-library/statutes/STATE_ND_T41_C41-09_S41-09-09.md) - [N.D. Cent. Code § 41-09-10 41-09-10. (9-110) Security interests arising under chapter 41-02 or 41-02.1](https://www.frixlaw.com/law-library/statutes/STATE_ND_T41_C41-09_S41-09-10.md) - [N.D. Cent. Code § 41-09-11 41-09-11. (9-201) General effectiveness of security agreement](https://www.frixlaw.com/law-library/statutes/STATE_ND_T41_C41-09_S41-09-11.md) --- Source: Frix Law Library, https://www.frixlaw.com/law-library/statutes/STATE_ND_T41_C41-09_S41-09-05. Check the current official text before relying on it. Not legal advice.