{"data":{"id":"us-ky/krs-355.7-106","jurisdiction":"us-ky","citation":"KRS 355.7-106","heading":"Control of electronic document of title.","body":"(1) A person has control of an electronic document of title if a system employed for\nevidencing the transfer of interests in the electronic document reliably establishes\nthat person as the person to which the electronic document was issued or\ntransferred.\n(2) A system satisfies subsection (1) of this section, and a person has control of an\nelectronic document of title, if the document is created, stored, and transferred in a\nmanner that:\n(a) A single authoritative copy of the document exists which is unique,\nidentifiable, and, except as otherwise provided in paragraphs (d), (e), and (f)\nof this subsection, unalterable;\n(b) The authoritative copy identifies the person asserting control as:\n1. The person to which the document was issued; or\n2. If the authoritative  copy indicates that the document has been\ntransferred, the person to which the document was most recently\ntransferred;\n(c) The authoritative copy is communicated to and maintained by the person\nasserting control or its designated custodian;\n(d) Copies or amendments that add or change an identified transferee of the\nauthoritative copy can be made only with the consent of the person asserting\ncontrol;\n(e) Each copy of the authoritative copy and any copy of a copy is readily\nidentifiable as a copy that is not the authoritative copy; and\n(f) Any amendment of the authoritative copy is readily identifiable as authorized\nor unauthorized.\n(3) A system satisfies s ubsection (1) of this section, and a person has control of an\nelectronic document of title, if an authoritative electronic copy of the document, a\nrecord attached to or logically associated with the electronic copy, or a system in\nwhich the electronic copy is recorded:\n(a) Enables the person to readily identify each electronic copy as either an\nauthoritative copy or a nonauthoritative copy;\n(b) Enables the person to readily identify itself in any way, including by name,\nidentifying number, cryptographic key , office, or account number, as the\nperson to which each authoritative electronic copy was issued or transferred;\nand\n(c) Gives the person exclusive power, subject to subsection (4) of this section, to:\n1. Prevent others from adding or changing the person to which each\nauthoritative electronic copy has been issued or transferred; and\n2. Transfer control of each authoritative electronic copy.\n(4) Subject to subsection (5) of this section, a power is exclusive under subsection\n(3)(c)1. and 2. of this section even if:\n(a) The authoritative electronic copy, a record attached to or logically associated\nwith the authoritative electronic copy, or a system in which the authoritative\nelectronic copy is recorded limits the use of the document of title or has a\nprotocol that is programmed to cause a change, including a transfer or loss of\ncontrol; or\n(b) The power is shared with another person.\n(5) A power of a person is not shared with another person under subsection (4)(b) of\nthis section and the person's power is not exclusive if:\n(a) The person can exercise the power only if the power also is exercised by the\nother person; and\n(b) The other person:\n1. Can exercise the power without exercise of the power by the person; or\n2. Is the transferor to the person of an interest in the document of title.\n(6) If a person has the powers specified in subsection (3)(c)1. and 2. of this section, the\npowers are presumed to be exclusive.\n(7) A person has control of an electronic document of title if another person, other than\nthe transferor to the person of an interest in the document:\n(a) Has control of the document and acknowledges that it has control on behalf of\nthe person; or\n(b) Obtains control of the document after having acknowledged that it will obtain\ncontrol of the document on behalf of the person.\n(8) A person that has control under this section is not required to acknowledge that it\nhas control on behalf of another person.\n(9) If a person acknowledges that it has or will obtain control on behalf of another\nperson, unless the person otherwise agrees or law other than this article or Article 9\nof this chapter otherwise provides, the person does not owe any duty to the other\nperson and is not required to confirm the acknowledgment to any other person.","path":[],"source_url":"https://apps.legislature.ky.gov/law/statutes/statute.aspx?id=55662","current_through":"Includes enactments through the 2026 Regular Session","vintage":"09/05/2026","retrieved_at":"2026-09-05T20:58:46Z","sha256":"7a8533577749ee39cb07c8900ea32d52d2a7a84bc1ece961a9fa2f93b1a56179","source_id":"us-ky","stale":false,"prev":"us-ky/krs-355.7-105","next":"us-ky/krs-355.7-201"},"notice":"GroundRules: Original legal text. Not legal advice."}