Commonwealth Consolidated Acts Commonwealth Consolidated Acts(1) A secured party has control of a negotiable instrument that is not evidenced by a certificate if, and only if:
(a) the instrument is able to be transferred in accordance with the operating rules of a clearing and settlement facility; and
(b) there is an agreement in force under which the secured party (or a person who has agreed to act on the instructions of the secured party) controls the sending of some or all electronic messages or other electronic communications by which the instrument could be transferred.
(2) For the purposes of subsection (1), a secured party has control of a negotiable instrument even if the registered owner (who might be the grantor) retains the right:
(a) to make substitutions for the instrument; or
(b) to originate instructions to the issuer; or
(c) to otherwise deal with the instrument.