15 U.S.C. § 7021 : US Code - Section 7021: Transferable records

Search 15 U.S.C. § 7021 : US Code - Section 7021: Transferable records

(a) Definitions
For purposes of this section:
(1) Transferable record
The term "transferable record" means an electronic record that -

(A) would be a note under Article 3 of the Uniform Commercial
Code if the electronic record were in writing;
(B) the issuer of the electronic record expressly has agreed
is a transferable record; and
(C) relates to a loan secured by real property.
A transferable record may be executed using an electronic
signature.
(2) Other definitions
The terms "electronic record", "electronic signature", and
"person" have the same meanings provided in section 7006 of this
title.
(b) Control
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) Conditions
A system satisfies subsection (b) of this section, 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 paragraphs (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) Status as holder
Except as otherwise agreed, a person having control of a
transferable record is the holder, as defined in section 1-201(20)
of the Uniform Commercial Code, 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), 9-308, or
revised section 9-330 of the Uniform Commercial Code are satisfied,
the rights and defenses of a holder in due course or a purchaser,
respectively. Delivery, possession, and endorsement are not
required to obtain or exercise any of the rights under this
subsection.
(e) Obligor rights
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) Proof of control
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.
(g) UCC references
For purposes of this subsection, all references to the Uniform
Commercial Code are to the Uniform Commercial Code as in effect in
the jurisdiction the law of which governs the transferable record.