KRS § 369.116 — KY Code / Title XXIX / Chapter 369 / Section 369.116
369.116 Transferable records
Status: in_force

369.116 Transferable records.

(1) In this section, "transferable record" means an electronic record that:

(a) Would be a note under Article 3 of KRS Chapter 355 or a document under

Article 7 of KRS Chapter 355 if the electronic record were in writing; and

(b) The issuer of the electronic record expressly has agreed is a transferable

record.

(2) 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.

(3) A system satisfies subsection (2) 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:

(a) A single authoritative copy of the transferable record exists which is unique,

identifiable, and, except as otherwise provided in paragraphs (d), (e), and (f)

of this subsection, unalterable;

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

1. The person to which the transferable record was issued; or

2. If the authoritative copy indicates that the transferable record has been

transferred, the person to which the transferable record was most

recently transferred;

(c) The authoritative copy is communicated to and maintained by the person

asserting control or its designated custodian;

(d) Copies of revisions that add or change an identified assignee of the

authoritative copy can be made only with the consent of the person asserting

control;

(e) 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

(f) Any revision of the authoritative copy is readily identifiable as authorized or

unauthorized.

(4) (a) Except as otherwise agreed, a person having control of a transferable record is

the holder, as defined in KRS 355.1-201, of the transferable record and has

the same rights and defenses as a holder of an equivalent record or writing

under KRS Chapter 355, including, if the applicable statutory requirements

under KRS 355.3-302(1), 355.7-501, or 355.9-330 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.

(b) Delivery, possession, and indorsement are not required to obtain or exercise

any of the rights under this subsection.

(5) Except as otherwise agreed, an obligor under a transferable record has the same

rights and defenses as an equivalent obligor under equivalent records or writing

under KRS Chapter 355.

(6) 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.