§ 25-7-106. Control of electronic document of title. - North Carolina Statutes

§ 25‑7‑106. Control of electronic document of title.

(a)        A person hascontrol of an electronic document of title if a system employed for evidencingthe transfer of interests in the electronic document reliably establishes thatperson as the person to which the electronic document was issued ortransferred.

(b)        A system satisfiessubsection (a) of this section, and a person is deemed to have control of anelectronic document of title, if the document is created, stored, and assignedin such a manner that:

(1)        A singleauthoritative copy of the document exists which is unique, identifiable, and,except as otherwise provided in subdivisions (4), (5), and (6) of thissubsection, unalterable;

(2)        The authoritativecopy identifies the person asserting control as:

a.         The person to whomthe document was issued; or

b.         If the authoritativecopy indicates that the document has been transferred, the person to whom thedocument was most recently transferred;

(3)        The authoritativecopy is communicated to and maintained by the person asserting control or itsdesignated custodian;

(4)        Copies or amendmentsthat 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 amendment of theauthoritative copy is readily identifiable as authorized or unauthorized. (2006‑112, s. 25.)