Also known as: electronic document · electronic docs · e-documents · digital documents
Written by attorneys · grounded in primary & secondary sources — see below
Collateral consisting of documents of title in electronic form. A security interest in electronic documents may be perfected by control under the specified UCC sections and remains perfected only while the secured party retains that control.
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Echo Systems borrows from Eastern Electric and grants a security interest in its electronic bills of lading stored on a platform that allows Eastern Electric exclusive power to transfer control. Eastern Electric obtains control of each authoritative electronic copy. The security interest is perfected by that control.
Equinox Energy holds a security interest in electronic warehouse receipts owned by Edgewater Capital. Equinox Energy later loses the exclusive power to prevent transfers of the authoritative copies. The security interest ceases to be perfected once control ends.
A security interest in electronic documents is perfected by control under the listed UCC sections. The secured party must obtain control of each authoritative electronic copy.
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Perfection by control continues only while the secured party retains control of the authoritative electronic copies.
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The system must enable ready identification of authoritative copies, identify the person to whom each copy was issued or transferred, and give that person exclusive power to prevent changes and to transfer control.
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