§490:7-106 - Control of electronic document of title.
§490:7-106 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), 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 that 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 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. [L 2004, c 163, pt of §1]