§ 9-16-15 — Transferable records

North Dakota § 9-16-15

• Jurisdiction: North Dakota
• Title 9: Contracts and Obligations
• Ch. 9-16: Electronic Transactions

Text

1. In this section, "transferable record" means an electronic record that:
a. Would be a note under chapter 41-03 or a document under chapter 41-07 if the
electronic record were in writing; and
b. The issuer of the electronic record expressly has agreed is a transferable record.
2. A person has control of a transferable record if a system employed for evidencing the
transfer of interests in the transferable record reliably establishes that person as the
person to which the transferable record was issued or transferred.
3. A system satisfies subsection 2, and a person is deemed to have control of a
transferable record, if the transferable record is created, stored, and assigned in such
a manner that:
a. A single authoritative copy of the transferable record exists which is unique,
identifiable, and, except as otherwise provided in subdivisions d, e, and f,
unalterable;
b. The authoritative copy identifies the person asserting control as:
(1) The person to which the transferable record was issued; or
(2) If the authoritative copy indicates that the transferable record has been
transferred, the person to which the transferable record was most recently
transferred;

c. The authoritative copy is communicated to and maintained by the person
asserting control or its designated custodian;
d. Copies or revisions that add or change an identified assignee of the authoritative
copy can be made only with the consent of the person asserting control;
e. 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
f. Any revision of the authoritative copy is readily identifiable as authorized or
unauthorized.
4. Except as otherwise agreed, a person having control of a transferable record is the
holder, as defined in section 41-01-09, of the transferable record and has the same
rights and defenses as a holder of an equivalent record or writing under title 41,
including, if the applicable statutory requirements under subsection 1 of section
41-03-28, section 41-07-30, or section 41-09-29 are satisfied, the rights and defenses
of a holder in due course, a holder to which a negotiable document of title has been
duly negotiated, or a purchaser, respectively. Delivery, possession, and endorsement
are not required to obtain or exercise any of the rights under this subsection.
5. Except as otherwise agreed, an obligor under a transferable record has the same
rights and defenses as an equivalent obligor under equivalent records or writings
under title 41.
6. If requested by a person against which enforcement is sought, the person seeking to
enforce the transferable record shall provide reasonable proof that the person is in
control of the transferable record. Proof may include access to the authoritative copy
of the transferable record and related business records sufficient to review the terms of
the transferable record and to establish the identity of the person having control of the
transferable record.