§ 42-127.1-16. Transferable records.
(a) In this section, "transferable record� means an electronic record that:
(1) Would be a note under chapter 3 of title 6A or a document under chapter 7 of title 6A if the electronic record were in writing; and
(2) The issuer of the electronic record expressly has agreed is a transferable record.
(b) A person has control of a transferable record if a system employed for evidencing
the transfer of interests in the 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.
(c) A system satisfies subsection (b), 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:
(1) A single authoritative copy of the transferable record exists which is unique, identifiable,
and, except as otherwise provided in subdivisions (c)(4), (5), and (6), unalterable;
(2) The authoritative copy identifies the person asserting control as: (i) the person
to which the transferable record was issued; (ii) if the authoritative copy indicates
that the transferable record has been transferred, the person to which the transferable
record 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 revisions 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 revision of the authoritative copy is readily identifiable as authorized or unauthorized.
(d) Except as otherwise agreed, a person having control of a transferable record is the
holder, as defined in § 6A-1-201(b)(21), of the transferable record and has the same rights and defenses as a holder of an
equivalent record or writing under title 6A, including, if the applicable statutory
requirements under §§ 6A-3-302(a), 6A-7-501, or 6A-9-308 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.
(e) 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
6A.
(f) 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 to establish the identity of the person having
control of the transferable record.