CONTROLLABLE ELECTRONIC RECORDS
Cal. COM § 12104
California Statutes
(
a) This
section applies to the acquisition and purchase of rights in a controllable account or controllable payment intangible, including the rights and benefits under subdivisions (c), (d), (e), (g), and (
h) of a purchaser and qualifying purchaser, in the same manner this
section applies to a controllable electronic record. (
b) To determine whether a purchaser of a controllable account or a controllable payment intangible is a qualifying purchaser, the purchaser obtains control of the account or payment intangible if it obtains control of the controllable electronic record that evidences the account or payment intangible. (
c) Except as provided in this section, law other than this division determines whether a person acquires a right in a controllable electronic record and 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 power to transfer, except that 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 its rights in the controllable electronic record free of a claim of a property right in the controllable electronic record. (
f) Except as provided in subdivisions (
a) and (
e) for a controllable account and a controllable payment intangible or law other than this division, a qualifying purchaser takes a right to payment, right to performance, or other interest in property evidenced by the 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 a purchase by the qualifying purchaser of a controllable electronic record and a claim of a property right in another controllable electronic record, whether the action is framed in conversion, replevin, constructive trust, equitable lien, or other theory. (
h) Filing of a financing statement under Division 9 (commencing with