Also known as: electronic records · electronic recording · e-record · digital record
Written by attorneys · grounded in primary & secondary sources — see below
A record of information created, generated, sent, communicated, received, or stored by electronic means.
Equinox Energy grants Edgewater Capital a security interest in its portfolio of controllable electronic records representing customer payment streams. Edgewater Capital files a financing statement covering the records in the appropriate office. The filing perfects the security interest even though Edgewater Capital never takes control of the records themselves.
Elemental Pharmaceuticals borrows from Emerald Enterprises and grants a security interest in controllable electronic records stored on a shared platform. Emerald Enterprises obtains control of the records under the applicable control rules. The security interest becomes perfected once control is achieved.
Select any source to read its text and confirm it supports the definition.
Eugene Ellsworth pledges controllable electronic records to Enzo Eastwood as collateral. Eastwood obtains control and perfects the security interest. When Eastwood later relinquishes control to a third party without taking other perfection steps, the security interest ceases to be perfected by control.
Elijah Edwards finances equipment purchases through Elena Estrada and grants a security interest in chattel paper that exists in both tangible and electronic form. Estrada takes possession of the authoritative tangible copies and obtains control of the authoritative electronic copies. The dual actions perfect the security interest in the entire chattel paper.
A security interest in a controllable electronic record may be perfected by filing a financing statement or by obtaining control of the record. Control must be obtained and retained for perfection to continue under that method.
Supporting sources
No. Perfection by control lasts only while the secured party retains control. Once control is lost, the security interest is no longer perfected by that method unless another perfection step has been taken.
Supporting sources
Yes. A secured party perfects a security interest in chattel paper by taking possession of authoritative tangible copies and obtaining control of authoritative electronic copies. Both steps must occur for perfection to attach and continue.
Supporting sources