Texas Business & Commerce Code - Section 43.016. Transferable Records
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§ 43.016. TRANSFERABLE RECORDS. (a) In this section,
"transferable record" means an electronic record that:
(1) would be a note under Chapter 3, or a document
under Chapter 7, if the electronic record were in writing; and
(2) the issuer of the electronic record expressly has
agreed is a transferable record.
(b) A person has control of a transferable record if a
system employed for evidencing the transfer of interests in the
transferable record reliably establishes that person as the person
to which the transferable record was issued or transferred.
(c) A system satisfies Subsection (b), and a person is
deemed to have control of a transferable record, if the
transferable record is created, stored, and assigned in such a
manner that:
(1) a single authoritative copy of the transferable
record exists which is unique, identifiable, and, except as
otherwise provided in Subdivisions (4), (5), and (6), unalterable;
(2) the authoritative copy identifies the person
asserting control as:
(A) the person to which the transferable record
was issued; or
(B) if the authoritative copy indicates that the
transferable record has been transferred, the person to which the
transferable record 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 revisions 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 revision of the authoritative copy is readily
identifiable as authorized or unauthorized.
(d) Except as otherwise agreed, a person having control of a
transferable record is the holder, as defined in Section 1.201, of
the transferable record and has the same rights and defenses as a
holder of an equivalent record or writing under the Uniform
Commercial Code, including, if the applicable statutory
requirements under Section 3.302(a), 7.501, or 9.330 are satisfied,
the rights and defenses of a holder in due course, a holder to which
a negotiable document of title has been duly negotiated, or a
purchaser, respectively. Delivery, possession, and indorsement
are not required to obtain or exercise any of the rights under this
subsection.
(e) Except as otherwise agreed, an obligor under a
transferable record has the same rights and defenses as an
equivalent obligor under equivalent records or writings under the
Uniform Commercial Code.
(f) If requested by a person against which enforcement is
sought, the person seeking to enforce the transferable record shall
provide reasonable proof that the person is in control of the
transferable record. Proof may include access to the authoritative
copy of the transferable record and related business records
sufficient to review the terms of the transferable record and to
establish the identity of the person having control of the
transferable record.
Added by Acts 2001, 77th Leg., ch. 702, § 1, eff. Jan. 1, 2002.
Section: 43.009 43.010 43.011 43.012 43.013 43.014 43.015 43.016 43.017 43.018 43.019 43.020 43.021 44.001 44.002
Last modified: August 10, 2007
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