TITLE 28

COMMERCIAL TRANSACTIONS

CHAPTER 7

DOCUMENTS OF TITLE

PART 1.

GENERAL

28-7-106.  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) of this section, 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 subsections (b)(4), (5), and (6) of this section, 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.

History:

[28-7-106, added 2004, ch. 42, sec. 2, p. 82.]