2000 Minnesota Statutes

     336.9-105 Control of electronic chattel paper. 

    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 which is unique, identifiable, and, except as otherwise 
 provided in paragraphs (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 revisions that add or change an identified 
 assignee of the authoritative copy can be made only with the 
 participation 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 revision of the authoritative copy is readily 
 identifiable as an authorized or unauthorized revision. 

    HIST: 2000 c 399 art 1 s 5 

*   NOTE:  This section, as added by Laws 2000, chapter 399, 
*article 1, section 5, is effective July 1, 2001.  Laws 2000, 
*chapter 399, article 1, section 130. 

*   NOTE:  Minnesota Statutes 1998, section 336.9-105, which 
*reads as follows, is repealed July 1, 2001.  Laws 2000, chapter 
*399, article 1, section 130. 

*   "336.9-105 Definitions and index of definitions. 

*   (1) In this article unless the context otherwise requires: 

*   (a) "Account debtor" means the person who is obligated on 
*an account, chattel paper or general intangible; 

*   (b) "Chattel paper" means a writing or writings which 
*evidence both a monetary obligation and a security interest in 
*or a lease of specific goods, but a charter or other contract 
*involving the use or hire of a vessel is not chattel paper.  
*When a transaction is evidenced both by such a security 
*agreement or a lease and by an instrument or a series of 
*instruments, the group of writings taken together constitutes 
*chattel paper; 

*   (c) "Collateral" means the property subject to a security 
*interest, and includes accounts and chattel paper which have 
*been sold; 

*   (d) "Debtor" means the person who owes payment or other 
*performance of the obligation secured, whether or not the person 
*owns or has rights in the collateral, and includes the seller of 
*accounts or chattel paper.  Where the debtor and the owner of 
*the collateral are not the same person, the term "debtor" means 
*the owner of the collateral in any provision of the article 
*dealing with the collateral, the obligor in any provision 
*dealing with the obligation, and may include both where the 
*context so requires; 

*   (e) "Deposit account" means a demand, time, savings, 
*passbook or like account maintained with a bank, savings 
*association, credit union or like organization, other than an 
*account evidenced by a certificate of deposit; 

*   (f) "Document" means document of title as defined in the 
*general definitions of article 1 (section 336.1-201) and a 
*receipt of the kind described in subsection (2) of section 
*336.7-201; 

*   (g) "Encumbrance" includes real estate mortgages and other 
*liens on real estate and all other rights in real estate that 
*are not ownership interests; 

*   (h) "Goods" includes all things which are movable at the 
*time the security interest attaches or which are fixtures 
*(section 336.9-313), but does not include money, documents, 
*instruments, investment property, accounts, chattel paper, 
*general intangibles, or minerals or the like (including oil and 
*gas) before extraction.  "Goods" also include standing timber 
*which is to be cut and removed under a conveyance or contract 
*for sale, the unborn young of animals and growing crops; 

*   (i) "Instrument" means a negotiable instrument (defined in 
*section 336.3-104) or any other writing which evidences a right 
*to the payment of money and is not itself a security agreement 
*or lease and is of a type which is in ordinary course of 
*business transferred by delivery with any necessary endorsement 
*or assignment.  The term does not include investment property; 

*   (j) "Mortgage" means a consensual interest created by a 
*real estate mortgage, a trust deed on real estate, or the like; 

*   (k) An advance is made "pursuant to commitment" if the 
*secured party has made a binding promise to make it, whether or 
*not a subsequent event of default or other event not within the 
*secured party's control has relieved or may relieve the secured 
*party from the obligation; 

*   (l) "Security agreement" means an agreement which creates 
*or provides for a security interest; 

*   (m) "Secured party" means a lender, seller or other person 
*in whose favor there is a security interest, including a person 
*to whom accounts or chattel paper have been sold.  When the 
*holders of obligations issued under an indenture of trust, 
*equipment trust agreement or the like are represented by a 
*trustee or other person, the representative is the secured 
*party; and 

*   (n) "Transmitting utility" means any person engaged in the 
*railroad, street railway or trolley bus business, the electric 
*or electronics communications transmission business, the 
*transmission of goods by pipeline, or the transmission or the 
*production and transmission of electricity, steam, gas or water, 
*or the provision of sewer service.  Any person filing a 
*financing statement under this article and under authority of 
*the provisions of Minnesota Statutes 1974, Sections 300.111 to 
*300.115 shall be deemed a "transmitting utility" hereunder. 

*   (2) Other definitions applying to this article and the 
*sections in which they appear are: 

*   "Account," section 336.9-106. 

*   "Attach," section 336.9-203. 

*   "Commodity contract," section 336.9-115. 

*   "Commodity customer," section 336.9-115. 

*   "Commodity intermediary," section 336.9-115. 

*   "Construction mortgage," section 336.9-313(1). 

*   "Consumer goods," section 336.9-109(1). 

*   "Control," section 336.9-115. 

*   "Equipment," section 336.9-109(2). 

*   "Farm products," section 336.9-109(3). 

*   "Fixture," section 336.9-313. 

*   "Fixture filing," section 336.9-313. 

*   "General intangibles," section 336.9-106. 

*   "Inventory," section 336.9-109(4). 

*   "Investment property," section 336.9-115. 

*   "Lien creditor," section 336.9-301(3). 

*   "Motor vehicle," section 336.9-401(7). 

*   "Proceeds," section 336.9-306(1). 

*   "Purchase money security interest," section 336.9-107. 

*   "United States," section 336.9-103. 

*   (3) The following definitions in other articles apply to 
*this article: 

*   "Broker," section 336.8-102. 

*   "Certificated security," section 336.8-102. 

*   "Check," section 336.3-104. 

*   "Clearing corporation," section 336.8-102. 

*   "Contract for sale," section 336.2-106. 

*   "Control," section 336.8-106. 

*   "Delivery," section 336.8-301. 

*   "Entitlement holder," section 336.8-102. 

*   "Financial asset," section 336.8-102. 

*   "Holder in due course," section 336.3-302. 

*   "Letter of credit," section 336.5-102. 

*   "Note," section 336.3-104. 

*   "Proceeds of a letter of credit," section 336.5-114(a). 

*   "Sale," section 336.2-106. 

*   "Securities intermediary," section 336.8-102. 

*   "Security," section 336.8-102. 

*   "Security certificate," section 336.8-102. 

*   "Security entitlement," section 336.8-102. 

*   "Uncertificated security," section 336.8-102. 

*   (4) In addition article 1 contains general definitions and 
*principles of construction and interpretation applicable 
*throughout this article."