scope:

The scope of this standard begins at the time of signing the Contract, inclusive of signature capture, and includes the creation, storage and assignment of Electronic Chattel Paper where the assignment will involve establishing control of the Electronic Chattel Paper. This standard addresses both electronically originated Chattel Paper and Tangible Chattel Paper that is subsequently converted to an electronic format. This standard does not address other documents involved in the process (e.g. titles, odometer statements, etc.), the data elements a Contract should contain, or the formatting of the Contract. In addition, this standard does not address the process or legal requirements of presenting Contracts to Customers, the requirements to determine enforceability of Electronic Signatures, or the privacy requirements arising out of the relationships among the parties.

This standard only addresses the creation, storage, and assignment of Electronic Chattel Paper where assignment involves establishing "control" of the Electronic Chattel Paper. It would not be necessary to satisfy most of the requirements set forth in this standard to establish a sufficient system of creating, storing, and assigning Electronic Chattel Paper if the assignee chose to perfect its interest in the Electronic Chattel Paper by filing a financing statement rather than by establishing "control" with respect to the Electronic Chattel Paper, or if the Dealer does not assign the Electronic Chattel Paper.

In addition, this standard only addresses retail installment sale and lease contracts in the automotive dealer financing industry. However, it may be useful in establishing a similar process for banks, credit unions, and finance companies that make secured loans directly to buyers to enable them to purchase vehicles.

The order in which the sections of this standard are presented is not intended to represent a solution or process flow. Notes and examples integrated in the text of this standard and the informative annexes located at the end of this standard are provided only to assist the reader with understanding or using this document. These elements are not part of this standard and are not requirements for implementing this standard.

This standard is not intended to dictate the use of a particular business process or technology. Therefore, this standard does not recommend or endorse any particular business, process, or technology solution for use in implementation.