70A-7a-106 - Control of electronic document of title.
70A-7a-106. Control of electronic document of title.
(1) A person has control of an electronic document of title if a system employed forevidencing the transfer of interests in the electronic document reliably establishes that person asthe person to which the electronic document was issued or transferred.
(2) A system satisfies Subsection (1), and a person is considered to have control of anelectronic document of title, if the document is created, stored, and assigned in such a mannerthat:
(a) a single authoritative copy of the document exists which is unique, identifiable, and,except as otherwise provided in Subsections (2)(d), (e), and (f), unalterable;
(b) the authoritative copy identifies the person asserting control as:
(i) the person to which the document was issued; or
(ii) if the authoritative copy indicates that the document has been transferred, the personto which the document was most recently transferred;
(c) the authoritative copy is communicated to and maintained by the person assertingcontrol or its designated custodian;
(d) copies or amendments that add or change an identified assignee of the authoritativecopy can be made only with the consent of the person asserting control;
(e) each copy of the authoritative copy and any copy of a copy is readily identifiable as acopy that is not the authoritative copy; and
(f) any amendment of the authoritative copy is readily identifiable as authorized orunauthorized.
Enacted by Chapter 42, 2006 General Session