Section 400.7-105

Title XXVI TRADE AND COMMERCE

Chapter 400

Effective - 28 Aug 2017, 2 histories   

  400.7-105.  Requests for issuance of tangible or electronic documents of title, effect. — (a)  Upon request of a person entitled under an electronic document of title, the issuer of the electronic document may issue a tangible document of title as a substitute for the electronic document if:

  (1)  the person entitled under the electronic document surrenders control of the document to the issuer; and

  (2)  the tangible document when issued contains a statement that it is issued in substitution for the electronic document.

  (b)  Upon issuance of a tangible document of title in substitution for an electronic document of title in accordance with subsection (a):

  (1)  the electronic document ceases to have any effect or validity; and

  (2)  the person that procured issuance of the tangible document warrants to all subsequent persons entitled under the tangible document that the warrantor was a person entitled under the electronic document when the warrantor surrendered control of the electronic document to the issuer.

  (c)  Upon request of a person entitled under a tangible document of title, the issuer of the tangible document may issue an electronic document of title as a substitute for the tangible document if:

  (1)  the person entitled under the tangible document surrenders possession of the document to the issuer; and

  (2)  the electronic document when issued contains a statement that it is issued in substitution for the tangible document.

  (d)  Upon issuance of an electronic document of title in substitution for a tangible document of title in accordance with subsection (c):

  (1)  the tangible document ceases to have any effect or validity; and

  (2)  the person that procured issuance of the electronic document warrants to all subsequent persons entitled under the electronic document that the warrantor was a person entitled under the tangible document when the warrantor surrendered possession of the tangible document to the issuer.

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(L. 1963 p. 503 § 7-105, A.L. 2017 H.B. 34)