§ 7.106 Control of electronic document of title

Codes > Texas Business and Commerce Code > Title 1 > Chapter 7 : Subchapter A > 7.106

Sec. 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 Subdivisions (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.

    Amended by:Acts 2005, 79th Leg., Ch. 122, Sec. 1, eff. September 1, 2005.