§489E-16  Transferable records.  (a)  In
this section, "transferable record" means an electronic record that:



(1)  Would be a note under article 3 of the Uniform
Commercial Code or a document under article 7 of the Uniform Commercial Code 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 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 paragraphs (4), (5), and (6), unalterable;



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



(A)  The person to which the transferable
record was issued; or



(B)  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 section
490:1-201 of the Uniform Commercial Code, of the transferable record and has
the same rights and defenses as a holder of an equivalent record or writing
under the Uniform Commercial Code, including, if the applicable statutory
requirements under section 490:3-302(a), 490:7-501, or 490:9-330 of the Uniform
Commercial Code 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
indorsement 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 chapter 490.



(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 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. [L 2000, c 282, pt of §1; am L 2001, c 55,
§25; am L 2004, c 162, §4]