Legislation

* Section 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 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 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.

* NB Effective until June 3, 2026
* Section 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 has control of an
electronic document of title, if the document is created, stored and
transferred in a manner that:

(1) a single authoritative copy of the document 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 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 transferee
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.

(c) A system satisfies subsection (a), and a person has control of an
electronic document of title, if an authoritative electronic copy of the
document, a record attached to or logically associated with the
electronic copy, or a system in which the electronic copy is recorded:

(1) enables the person readily to identify each electronic copy as
either an authoritative copy or a nonauthoritative copy;

(2) enables the person readily to identify itself in any way,
including by name, identifying number, cryptographic key, office, or
account number, as the person to which each authoritative electronic
copy was issued or transferred; and

(3) gives the person exclusive power, subject to subsection (d), to:

(A) prevent others from adding or changing the person to which each
authoritative electronic copy has been issued or transferred; and

(B) transfer control of each authoritative electronic copy.

(d) Subject to subsection (e), a power is exclusive under subsection
(c) (3) (A) even if:

(1) the authoritative electronic copy, a record attached to or
logically associated with the authoritative electronic copy, or a system
in which the authoritative electronic copy is recorded limits the use of
the document of title or has a protocol that is programmed to cause a
change, including a transfer or loss of control; or

(2) the power is shared with another person.

(e) A power of a person is not shared with another person under
subsection (d) (2) and the person's power is not exclusive if:

(1) the person can exercise the power only if the power also is
exercised by the other person; and

(2) the other person:

(A) can exercise the power without exercise of the power by the
person; or

(B) is the transferor to the person of an interest in the document of
title.

(f) If a person has the powers specified in subsection (c) (3) (A) and
(B), the powers are presumed to be exclusive.

(g) A person has control of an electronic document of title if another
person, other than the transferor to the person of an interest in the
document:

(1) has control of the document and acknowledges that it has control
on behalf of the person; or

(2) obtains control of the document after having acknowledged that it
will obtain control of the document on behalf of the person.

(h) A person that has control under this section is not required to
acknowledge that it has control on behalf of another person.

(i) If a person acknowledges that it has or will obtain control on
behalf of another person, unless the person otherwise agrees or law
other than this article or Article 9 otherwise provides, the person does
not owe any duty to the other person and is not required to confirm the
acknowledgment to any other person.

* NB Effective June 3, 2026