North Carolina General Statutes § 25-7-106 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) of this section, 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 subdivisions (4), (5), and (6) of this subsection, unalterable;

(2)        The authoritative copy identifies the person asserting control as:

a.         The person to whom the document was issued; or

b.         If the authoritative copy indicates that the document has been transferred, the person to whom 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. (2006-112, s. 25.)

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Last modified: March 23, 2014