Ind. Code § 26-1-12-101 Name and citation of statute
Sec. 101. This chapter shall be known and may be cited as Uniform Commercial Code - Controllable Electronic Records.
As added by P.L.199-2023, SEC.90.
Ind. Code ch. 26-1-12
Ind. Code ch. 26-1-12
in effectInd. Code § 26-1-12-102 Definitions; applicability of definitions concerning secured transactions; applicability of general definitions and principles of construction and interpretation
Sec. 102. (a) In this chapter the following definitions apply:
(1) "Controllable electronic record" means a record stored in an electronic medium that can be subjected to control under section 105 of this chapter. The term does not include a controllable account, a controllable payment intangible, a deposit account, an electronic copy of a record evidencing chattel paper, an electronic document of title, investment property, a transferable record, or an electronic record that is currently authorized or adopted by a domestic or foreign government and is not a medium of exchange that was recorded and transferable in a system that existed and operated for the medium of exchange before the medium of exchange was authorized or adopted by a government.
(2) "Qualifying purchaser" means a purchaser:
(A) of a controllable electronic record; or
(B) of an interest in a controllable electronic record;
that obtains control of the controllable electronic record for value, in good faith, and without notice of a claim of a property right in the controllable electronic record.
(3) "Transferable record" has the meaning set forth in:
(A) Section 201(a)(1) of the Electronic Signatures in Global and National Commerce Act (15 U.S.C. 7021(a)(1)); or
(B) IC 26-2-8-115(a).
(4) "Value" has the meaning set forth in IC 26-1-3.1-303(a), as if references in IC 26-1-3.1-303(a) to an "instrument" were references to a controllable account, a controllable electronic record, or a controllable payment intangible.
(b) The definitions in IC 26-1-9.1 of "account debtor", "controllable account", "controllable payment intangible", "chattel paper", "deposit account", and "investment property" apply throughout this chapter.
(c) The general definitions and principles of construction and interpretation set forth in IC 26-1-1 apply throughout this chapter.
As added by P.L.199-2023, SEC.90.
Ind. Code § 26-1-12-103 Preemption by statute concerning secured transactions; applicability of laws governing consumer transactions
Sec. 103. (a) If there is a conflict between this chapter and IC 26-1-9.1, IC 26-1-9.1 governs.
(b) A transaction subject to this chapter is subject to:
(1) any applicable rule of law that establishes a different rule for consumers; and
(2) any:
(A) other statute or regulation that regulates the rates, charges, agreements, and practices for loans, credit sales, or other extensions of credit, including IC 37-2 and IC 37-3; and
(B) consumer protection statute or regulation.
As added by P.L.199-2023, SEC.90. Amended by P.L.115-2026, SEC.48.
Ind. Code § 26-1-12-104 Rights of purchaser and qualifying purchaser in controllable accounts, controllable payment intangibles, and controllable electronic records; filing of financing statement ineffective as notice of claim of property right in controllable electronic record
Sec. 104. (a) This section applies to the acquisition and purchase rights in a controllable account or a controllable payment intangible, including the rights and benefits under subsections (c), (d), (e), (g), and (h) of a purchaser and a qualifying purchaser, in the same manner that this section applies with respect to a controllable electronic record.
(b) For purposes of determining whether a purchaser of a controllable account or a controllable payment intangible is a qualifying purchaser, the purchaser obtains control of the account or the payment intangible if the purchaser obtains control of the controllable electronic record that evidences the account or the payment intangible.
(c) Except as provided in this section, law other than this chapter determines:
(1) whether a person acquires a right in a controllable electronic record; and
(2) the right the person acquires.
(d) A purchaser of a controllable electronic record acquires all rights in the controllable electronic record that the transferor had or had the power to transfer. However, a purchaser of a limited interest in a controllable electronic record acquires rights only to the extent of the interest purchased.
(e) A qualifying purchaser acquires the qualifying purchaser's rights in a controllable electronic record free of a claim of a property right in the controllable electronic record.
(f) Except as provided in subsections (a) and (e) with respect to a controllable account or a controllable payment intangible, or in law other than this chapter, a qualifying purchaser takes:
(1) a right to payment;
(2) a right to performance; or
(3) another interest in property;
that is evidenced by a controllable electronic record subject to a claim of a property right in the right to payment, right to performance, or other interest in property.
(g) An action may not be asserted against a qualifying purchaser based on both:
(1) a purchase by the qualifying purchaser of a controllable electronic record; and
(2) a claim of a property right in another controllable electronic record;
regardless of whether the action is framed in conversion, replevin, constructive trust, equitable lien, or another theory.
(h) The filing of a financing statement under IC 26-1-9.1 is not notice of a claim of property right in a controllable electronic record.
As added by P.L.199-2023, SEC.90.
Ind. Code § 26-1-12-105 Control of controllable electronic record; exclusive power; control on behalf of a person
Sec. 105. (a) A person has control of a controllable electronic record if the electronic record, a record attached to or logically associated with the electronic record, or a system in which the electronic record is recorded:
(1) gives the person:
(A) power to avail itself of substantially all the benefit from the electronic record; and
(B) exclusive power, subject to subsection (b), to:
(i) prevent others from availing themselves of substantially all the benefit from the electronic record; and
(ii) transfer control of the electronic record to another person or cause another person to obtain control of another controllable electronic record as a result of the transfer of the electronic record; and
(2) enables the person readily to identify itself in any way, including by name, identifying number, cryptographic key, office, or account number, as having powers specified in subdivision (1).
(b) Subject to subsection (c), a power is exclusive under subsection (a)(1)(B)(i) and (a)(1)(B)(ii) even if:
(1) the controllable electronic record, a record attached to or logically associated with the electronic record, or a system in which the electronic record is recorded limits the use of the electronic record or has a protocol programmed to cause a change, including a transfer or loss of control or a modification of benefits afforded by the electronic record; or
(2) the power is shared with another person.
(c) A power of a person is not shared with another person under subsection (b)(2) and the person's power is not exclusive if:
(1) the person can exercise the power only if the power also is exercised by the other person; and
(2) the other person:
(A) can exercise the power without exercise of the power by the person; or
(B) is the transferor to the person of an interest in the controllable electronic record or in a controllable account or controllable payment intangible evidenced by the controllable electronic record.
(d) If a person has the powers specified in subsection (a)(1)(B)(i) and (a)(1)(B)(ii), the powers are presumed to be exclusive.
(e) A person has control of a controllable electronic record if another person, other than the transferor to the person of an interest in the controllable electronic record, or in a controllable account or controllable payment intangible evidenced by the controllable electronic record:
(1) has control of the electronic record and acknowledges that it has control on behalf of the person; or
(2) obtains control of the electronic record after having acknowledged that it will obtain control of the electronic record on behalf of the person.
(f) A person that has control under this section is not required to acknowledge that it has control on behalf of another person.
(g) If a person acknowledges that it has or will obtain control on behalf of another person, unless the person otherwise agrees or law other than this chapter or IC 26-1-9.1 otherwise provides, the person does not owe any duty to any other person and is not required to confirm the acknowledgment to any other person.
As added by P.L.199-2023, SEC.90.
Ind. Code § 26-1-12-106 Controllable accounts and controllable payment intangibles; notification of transfer; discharge of account debtor's obligation; proof of transfer; waiver of account debtor's rights ineffective; applicability of laws governing consumer transactions
Sec. 106. (a) An account debtor on a controllable account or a controllable payment intangible may discharge its obligation by paying:
(1) the person having control of the controllable electronic record that evidences the controllable account or the controllable payment intangible; or
(2) except as provided in subsection (b), a person that formerly had control of the controllable electronic record.
(b) Subject to subsection (d), the account debtor may not discharge its obligation by paying a person that formerly had control of the controllable electronic record if the account debtor receives a notification that:
(1) is signed by a person that formerly had control or by the person to which control was transferred;
(2) reasonably identifies the controllable account or controllable payment intangible;
(3) notifies the account debtor that control of the controllable electronic record that evidences the controllable account or controllable payment intangible was transferred;
(4) identifies the transferee, in any reasonable way, including by name, identifying number, cryptographic key, office, or account number; and
(5) provides a commercially reasonable method by which the account debtor is to pay the transferee.
(c) After receipt of a notification that complies with subsection (b), the account debtor may discharge its obligation by paying in accordance with the notification and may not discharge the obligation by paying a person that formerly had control.
(d) Subject to subsection (h), notification is ineffective under subsection (b):
(1) unless, before the notification is sent, the account debtor and the person that, at that time, had control of the controllable electronic record that evidences the controllable account or the controllable payment intangible agree in a signed record to a commercially reasonable method by which a person may furnish reasonable proof that control has been transferred;
(2) to the extent an agreement between the account debtor and seller of a payment intangible limits the account debtor's duty to pay a person other than the seller and the limitation is effective under law other than this chapter; or
(3) at the option of the account debtor, if the notification notifies the account debtor to:
(A) divide a payment;
(B) make less than the full amount of an installment or other periodic payment; or
(C) pay any part of a payment by more than one (1) method or to more than one (1) person.
(e) Subject to subsection (h), if requested by the account debtor, the person giving notification under subsection (b) seasonably shall furnish reasonable proof, using the method in the agreement described in subsection (d)(1), that control of the controllable electronic record has been transferred. Unless the person complies with the request, the account debtor may discharge its obligation by paying a person that formerly had control, even if the account debtor has received a notification under subsection (b).
(f) A person furnishes reasonable proof under subsection (e) that control has been transferred if the person demonstrates, using the method in the agreement described in subsection (d)(1), that the transferee has the power to:
(1) avail itself of substantially all the benefit from the controllable electronic record;
(2) prevent others from availing themselves of substantially all the benefit from the controllable electronic record; and
(3) transfer the powers specified in subdivisions (1) and (2) to another person.
(g) Subject to subsection (h), an account debtor may not waive or vary its rights under subsections (d)(1) and (e) or its option under subsection (d)(3).
(h) This section is subject to law other than this chapter that establishes a different rule for an account debtor who is an individual and who incurred the obligation primarily for personal, family, or household purposes.
As added by P.L.199-2023, SEC.90.
Ind. Code § 26-1-12-107 Governing local law; determination of controllable electronic record's jurisdiction; law governing rights acquired by purchaser or qualifying purchaser
Sec. 107. (a) Except as provided in subsection (b), the local law of an electronic record's jurisdiction governs a matter covered by this chapter.
(b) For a controllable electronic record that evidences a controllable account or a controllable payment intangible, the local law of the controllable electronic record's jurisdiction governs a matter covered by section 106 of this chapter unless an effective agreement determines that the local law of another jurisdiction governs.
(c) The following rules determine a controllable electronic record's jurisdiction under this section:
(1) If the controllable electronic record, or a record that is attached to or logically associated with the controllable electronic record and that is readily available for review, expressly provides that a particular jurisdiction is the controllable electronic record's jurisdiction for purposes of this chapter or IC 26-1, that jurisdiction is the controllable electronic record's jurisdiction.
(2) If subdivision (1) does not apply, and the rules of the system in which the controllable electronic record is recorded are readily available for review and expressly provide that a particular jurisdiction is the controllable electronic record's jurisdiction for purposes of this chapter or IC 26-1, that jurisdiction is the controllable electronic record's jurisdiction.
(3) If subdivisions (1) and (2) do not apply, and the controllable electronic record, or a record that is attached to or logically associated with the controllable electronic record and that is readily available for review, expressly provides that the controllable electronic record is governed by the law of a particular jurisdiction, that jurisdiction is the controllable electronic record's jurisdiction.
(4) If subdivisions (1) through (3) do not apply, and the rules of the system in which the controllable electronic record is recorded are readily available for review and expressly provide that the controllable electronic record or the system is governed by the law of a particular jurisdiction, that jurisdiction is the controllable electronic record's jurisdiction.
(5) If subdivisions (1) through (4) do not apply, the controllable electronic record's jurisdiction is the District of Columbia.
(d) If subsection (c)(5) applies and this chapter is not in effect in the District of Columbia without material modification, the governing law for a matter covered by this chapter is the law of the District of Columbia as though this chapter were in effect in the District of Columbia without material modification.
(e) To the extent that subsections (a) and (b) provide that the local law of the controllable electronic record's jurisdiction governs a matter covered by this chapter, that law governs even if the matter or a transaction to which the matter relates does not bear any relation to the controllable record's jurisdiction.
(f) The rights acquired under section 104 of this chapter by a purchaser or a qualifying purchaser are governed by the law applicable under this section at the time of purchase.
As added by P.L.199-2023, SEC.90.
Source: Open US Law by Vaquill AI (CC BY 4.0)URL: https://iga.in.gov/laws/2026/ic/titles/26Fetched: 10/17/2026