1. (a) Subject to subsections (b) through (e), laws other than this chapter determine:

   1. (1) whether a person acquires rights in a controllable electronic record; and
   2. (2) the rights the person acquires.
2. (b) A purchaser of a controllable electronic record acquires all rights in the controllable electronic record that the transferor had or had power to transfer.
3. (c) A purchaser of a limited interest in a controllable electronic record acquires rights only to the extent of the interest purchased.
4. (d) In addition to acquiring the rights of a purchaser described in subsections (b) and (c), a qualifying purchaser acquires rights in the acquired controllable electronic record free of any adverse claim.

5. (e) An action based on an adverse claim to a controllable electronic record (whether based on conversion, a right of replevin, a constructive trust, an equitable lien, or any other theory) may not be asserted against a qualifying purchaser that acquires an interest in, and obtains control of, the controllable electronic record for value and without notice of the adverse claim. For purposes of this subsection, a person has notice of an adverse claim if:

   1. (1) the person knows of the adverse claim; or

   2. (2) the person is aware of facts sufficient to indicate that there is a significant probability that the adverse claim exists and deliberately avoids information that would establish the existence of the adverse claim.

      The filing of a financing statement under IC 26-1-9.1 with respect to a controllable electronic record does not constitute notice of the existence of an adverse claim with respect to the controllable electronic record.

As added by P.L.110-2022, SEC.7.