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.

lawyer at desk

Ask a business law question, get an answer ASAP!
Thousands of highly rated, verified business lawyers.
Click here to chat with a lawyer about your rights.

Terms Used In Indiana Code 26-1-12-104

  • Equitable: Pertaining to civil suits in "equity" rather than in "law." In English legal history, the courts of "law" could order the payment of damages and could afford no other remedy. See damages. A separate court of "equity" could order someone to do something or to cease to do something. See, e.g., injunction. In American jurisprudence, the federal courts have both legal and equitable power, but the distinction is still an important one. For example, a trial by jury is normally available in "law" cases but not in "equity" cases. Source: U.S. Courts
  • Lien: A claim against real or personal property in satisfaction of a debt.
  • Property: includes personal and real property. See Indiana Code 1-1-4-5
     (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.

  Previous section
Next section  
 Chapter 12 Contents