North Carolina General Statutes Chapter 25. Uniform Commercial Code § 25-9-105.1. Control of electronic money

Current as of January 01, 2023 | Updated by Findlaw Staff

(a) General Rule for Control of Electronic Money.--A person has control of electronic money if both of the following apply:

(1) The electronic money, a record attached to or logically associated with the electronic money, or a system in which the electronic money is recorded gives the person both of the following:

a. Power to avail itself of substantially all the benefit from the electronic money.

b. Exclusive power, subject to subsection (b) of this section, to do both of the following:

1. Prevent others from availing themselves of substantially all the benefit from the electronic money.

2. Transfer control of the electronic money to another person or cause another person to obtain control of other electronic money as a result of the transfer of the electronic money.

(2) The electronic money, a record attached to or logically associated with the electronic money, or a system in which the electronic money is recorded enables the person readily to identify itself in any way, including by name, identifying number, cryptographic key, office, or account number, as having the powers under subdivision (1) of this subsection.

(b) Meaning of Exclusive.--Subject to subsection (c) of this section, a power is exclusive under sub-subdivision (a)(1)b. of this section even if either of the following applies:

(1) The electronic money, a record attached to or logically associated with the electronic money, or a system in which the electronic money is recorded limits the use of the electronic money or has a protocol programmed to cause a change, including a transfer or loss of control.

(2) The power is shared with another person.

(c) When Power Not Shared with Another Person.--A power of a person is not shared with another person under subdivision (b)(2) of this section and the person's power is not exclusive if both of the following apply:

(1) The person can exercise the power only if the power also is exercised by the other person.

(2) Either of the following applies:

a. The other person can exercise the power without exercise of the power by the person.

b. The other person is the transferor to the person of an interest in the electronic money.

(d) Presumption of Exclusivity of Certain Powers.--If a person has the powers specified in sub-subdivision (a)(1)b. of this section, the powers are presumed to be exclusive.

(e) Control Through Another Person.--A person has control of electronic money if either of the following applies to another person, other than the transferor to the person of an interest in the electronic money:

(1) The other person has control of the electronic money and acknowledges that it has control on behalf of the person.

(2) The other person obtains control of the electronic money after having acknowledged that it will obtain control of the electronic money on behalf of the person.

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Cite this article: FindLaw.com - North Carolina General Statutes Chapter 25. Uniform Commercial Code § 25-9-105.1. Control of electronic money - last updated January 01, 2023 | https://codes.findlaw.com/nc/chapter-25-uniform-commercial-code/nc-gen-st-sect-25-9-105-1/

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