15 USC 7021 - Transferable records

U.S Code last checked for updates: Apr 28, 2024

§ 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

(b)

Control

(c)

Conditions

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 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

(e)

Obligor rights

(f)

Proof of control

(g)

UCC references

(Pub. L. 106–229, title II, § 201, June 30, 2000, 114 Stat. 473.)

cite as: 15 USC 7021