Section 400.7-106

Title XXVI TRADE AND COMMERCE

Chapter 400

Effective - 28 Aug 2017   

  400.7-106.  Control of electronic document of title. — (a)  A person has control of an electronic document of title if a system employed for evidencing the transfer of interests in the electronic document reliably establishes that person as the person to which the electronic document was issued or transferred.

  (b)  A system satisfies subsection (a), and a person is deemed to have control of an electronic document of title, if the document is created, stored, and assigned in such a manner that:

  (1)  a single authoritative copy of the document exists which is unique, identifiable, and, except as otherwise provided in paragraphs (4), (5), and (6), unalterable;

  (2)  the authoritative copy identifies the person asserting control as:

  (A)  the person to which the document was issued; or

  (B)  if the authoritative copy indicates that the document has been transferred, the person to which the document was most recently transferred;

  (3)  the authoritative copy is communicated to and maintained by the person asserting control or its designated custodian;

  (4)  copies or amendments that add or change an identified assignee of the authoritative copy can be made only with the consent of the person asserting control;

  (5)  each copy of the authoritative copy and any copy of a copy is readily identifiable as a copy that is not the authoritative copy; and

  (6)  any amendment of the authoritative copy is readily identifiable as authorized or unauthorized.

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(L. 2017 H.B. 34)