{"data":{"id":"us-ky/krs-369.116","jurisdiction":"us-ky","citation":"KRS 369.116","heading":"Transferable records.","body":"(1) In this section, \"transferable record\" means an electronic record that:\n(a) Would be a note under Article 3 of KRS Chapter 355 or a document under\nArticle 7 of KRS Chapter 355 if the electronic record were in writing; and\n(b) The issuer of the electronic r ecord expressly has agreed is a transferable\nrecord.\n(2) A person has control of a transferable record if a system employed for evidencing\nthe transfer of interests in the transferable record reliably establishes that person as\nthe person to which the transferable record was issued or transferred.\n(3) A system satisfies subsection (2) of this section, and a person is deemed to have\ncontrol of a transferable record, if the transferable record is created, stored, and\nassigned in such a manner that:\n(a) A single authoritative copy of the transferable record 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 transferable record was issued; or\n2. If the authoritative copy indicates that the transferable record has been\ntransferred, the person to which the transferable record was most\nrecently transferred;\n(c) The authoritative copy is communicated to and maintained by the person\nasserting control or its designated custodian;\n(d) Copies of revisions that add or change an identified assignee 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 rea dily\nidentifiable as a copy that is not the authoritative copy; and\n(f) Any revision of the authoritative copy is readily identifiable as authorized or\nunauthorized.\n(4) (a) Except as otherwise agreed, a person having control of a transferable record is\nthe holder, as defined in KRS 355.1 -201, of the transferable record and has\nthe same rights and defenses as a holder of an equivalent record or writing\nunder KRS Chapter 355, including, if the applicable statutory requirements\nunder KRS 355.3-302(1), 355.7-501, or 355.9-330 are satisfied, the rights and\ndefenses of a holder in due course, a holder to which a negotiable document\nof title has been duly negotiated, or a purchaser, respectively.\n(b) Delivery, possession, and indorsement are not required to obtain  or exercise\nany of the rights under this subsection.\n(5) Except as otherwise agreed, an obligor under a transferable record has the same\nrights and defenses as an equivalent obligor under equivalent records or writing\nunder KRS Chapter 355.\n(6) If requested by a person against which enforcement is sought, the person seeking to\nenforce the transferable record shall provide reasonable proof that the person is in\ncontrol of the transferable record. Proof may include access to the authoritative\ncopy of the transferable record and related business records sufficient to review the\nterms of the transferable record and to establish the identity of the person having\ncontrol of the transferable record.","path":["KRS Chapter 369"],"source_url":"https://apps.legislature.ky.gov/law/statutes/statute.aspx?id=55736","current_through":"Includes enactments through the 2026 Regular Session","vintage":"09/05/2026","retrieved_at":"2026-09-05T20:59:07Z","sha256":"69909817a4a1466026730678c763ed19a5d7104aab084f50236eb2b81af49fd7","source_id":"us-ky","stale":false,"prev":"us-ky/krs-369.115","next":"us-ky/krs-369.117"},"notice":"GroundRules: Original legal text. Not legal advice."}