(a) In this section,"transferable record" means an electronic record that:
(1) Would be a noteunder Article 3 of Chapter 25 of the General Statutes or a document underArticle 7 of Chapter 25 of the General Statutes if the electronic record werein writing; and
(2) The issuer of theelectronic record expressly has agreed is a transferable record.
(b) A person hascontrol of a transferable record if a system employed for evidencing thetransfer of interests in the transferable record reliably establishes thatperson as the person to which the transferable record was issued ortransferred.
(c) A system satisfiessubsection (b) of this section, and a person is deemed to have control of atransferable record, if the transferable record is created, stored, andassigned in such a manner that:
(1) A singleauthoritative copy of the transferable record exists which is unique,identifiable, and, except as otherwise provided in subdivisions (4), (5), and(6) of this subsection, unalterable;
(2) The authoritativecopy identifies the person asserting control as:
a. The person to whichthe transferable record was issued; or
b. If the authoritativecopy indicates that the transferable record has been transferred, the person towhich the transferable record was most recently transferred;
(3) The authoritativecopy is communicated to and maintained by the person asserting control or itsdesignated custodian;
(4) Copies or revisionsthat add or change an identified assignee of the authoritative copy can be madeonly with the consent of the person asserting control;
(5) Each copy of theauthoritative copy and any copy of a copy is readily identifiable as a copythat is not the authoritative copy; and
(6) Any revision of theauthoritative copy is readily identifiable as authorized or unauthorized.
(d) Except as otherwiseagreed, a person having control of a transferable record is the holder, asdefined in G.S. 25‑1‑201(21), of the transferable record and hasthe same rights and defenses as a holder of an equivalent record or writingunder Chapter 25 of the General Statutes, including, if the applicablestatutory requirements under G.S. 25‑3‑302(a), 25‑7‑501,or 25‑9‑330 are satisfied, the rights and defenses of a holder indue course, a holder to which a negotiable document of title has been dulynegotiated, or a purchaser, respectively. Delivery, possession, and endorsementare not required to obtain or exercise any of the rights under this subsection.
(e) Except as otherwiseagreed, an obligor under a transferable record has the same rights and defensesas an equivalent obligor under equivalent records or writings under Chapter 25of the General Statutes.
(f) If requested by aperson against which enforcement is sought, the person seeking to enforce thetransferable record shall provide reasonable proof that the person is incontrol of the transferable record. Proof may include access to theauthoritative copy of the transferable record and related business recordssufficient to review the terms of the transferable record and to establish theidentity of the person having control of the transferable record. (2000‑152, s. 1; 2000‑140,s. 97; 2006‑112, s. 24.)
(a) In this section,"transferable record" means an electronic record that:
(1) Would be a noteunder Article 3 of Chapter 25 of the General Statutes or a document underArticle 7 of Chapter 25 of the General Statutes if the electronic record werein writing; and
(2) The issuer of theelectronic record expressly has agreed is a transferable record.
(b) A person hascontrol of a transferable record if a system employed for evidencing thetransfer of interests in the transferable record reliably establishes thatperson as the person to which the transferable record was issued ortransferred.
(c) A system satisfiessubsection (b) of this section, and a person is deemed to have control of atransferable record, if the transferable record is created, stored, andassigned in such a manner that:
(1) A singleauthoritative copy of the transferable record exists which is unique,identifiable, and, except as otherwise provided in subdivisions (4), (5), and(6) of this subsection, unalterable;
(2) The authoritativecopy identifies the person asserting control as:
a. The person to whichthe transferable record was issued; or
b. If the authoritativecopy indicates that the transferable record has been transferred, the person towhich the transferable record was most recently transferred;
(3) The authoritativecopy is communicated to and maintained by the person asserting control or itsdesignated custodian;
(4) Copies or revisionsthat add or change an identified assignee of the authoritative copy can be madeonly with the consent of the person asserting control;
(5) Each copy of theauthoritative copy and any copy of a copy is readily identifiable as a copythat is not the authoritative copy; and
(6) Any revision of theauthoritative copy is readily identifiable as authorized or unauthorized.
(d) Except as otherwiseagreed, a person having control of a transferable record is the holder, asdefined in G.S. 25‑1‑201(21), of the transferable record and hasthe same rights and defenses as a holder of an equivalent record or writingunder Chapter 25 of the General Statutes, including, if the applicablestatutory requirements under G.S. 25‑3‑302(a), 25‑7‑501,or 25‑9‑330 are satisfied, the rights and defenses of a holder indue course, a holder to which a negotiable document of title has been dulynegotiated, or a purchaser, respectively. Delivery, possession, and endorsementare not required to obtain or exercise any of the rights under this subsection.
(e) Except as otherwiseagreed, an obligor under a transferable record has the same rights and defensesas an equivalent obligor under equivalent records or writings under Chapter 25of the General Statutes.
(f) If requested by aperson against which enforcement is sought, the person seeking to enforce thetransferable record shall provide reasonable proof that the person is incontrol of the transferable record. Proof may include access to theauthoritative copy of the transferable record and related business recordssufficient to review the terms of the transferable record and to establish theidentity of the person having control of the transferable record. (2000‑152, s. 1; 2000‑140,s. 97; 2006‑112, s. 24.)
(a) In this section,"transferable record" means an electronic record that:
(1) Would be a noteunder Article 3 of Chapter 25 of the General Statutes or a document underArticle 7 of Chapter 25 of the General Statutes if the electronic record werein writing; and
(2) The issuer of theelectronic record expressly has agreed is a transferable record.
(b) A person hascontrol of a transferable record if a system employed for evidencing thetransfer of interests in the transferable record reliably establishes thatperson as the person to which the transferable record was issued ortransferred.
(c) A system satisfiessubsection (b) of this section, and a person is deemed to have control of atransferable record, if the transferable record is created, stored, andassigned in such a manner that:
(1) A singleauthoritative copy of the transferable record exists which is unique,identifiable, and, except as otherwise provided in subdivisions (4), (5), and(6) of this subsection, unalterable;
(2) The authoritativecopy identifies the person asserting control as:
a. The person to whichthe transferable record was issued; or
b. If the authoritativecopy indicates that the transferable record has been transferred, the person towhich the transferable record was most recently transferred;
(3) The authoritativecopy is communicated to and maintained by the person asserting control or itsdesignated custodian;
(4) Copies or revisionsthat add or change an identified assignee of the authoritative copy can be madeonly with the consent of the person asserting control;
(5) Each copy of theauthoritative copy and any copy of a copy is readily identifiable as a copythat is not the authoritative copy; and
(6) Any revision of theauthoritative copy is readily identifiable as authorized or unauthorized.
(d) Except as otherwiseagreed, a person having control of a transferable record is the holder, asdefined in G.S. 25‑1‑201(21), of the transferable record and hasthe same rights and defenses as a holder of an equivalent record or writingunder Chapter 25 of the General Statutes, including, if the applicablestatutory requirements under G.S. 25‑3‑302(a), 25‑7‑501,or 25‑9‑330 are satisfied, the rights and defenses of a holder indue course, a holder to which a negotiable document of title has been dulynegotiated, or a purchaser, respectively. Delivery, possession, and endorsementare not required to obtain or exercise any of the rights under this subsection.
(e) Except as otherwiseagreed, an obligor under a transferable record has the same rights and defensesas an equivalent obligor under equivalent records or writings under Chapter 25of the General Statutes.
(f) If requested by aperson against which enforcement is sought, the person seeking to enforce thetransferable record shall provide reasonable proof that the person is incontrol of the transferable record. Proof may include access to theauthoritative copy of the transferable record and related business recordssufficient to review the terms of the transferable record and to establish theidentity of the person having control of the transferable record. (2000‑152, s. 1; 2000‑140,s. 97; 2006‑112, s. 24.)
