SB-0548, As Passed House, March 26, 2014SB-0548, As Passed Senate, October 24, 2013
September 25, 2013, Introduced by Senator BOOHER and referred to the Committee on Banking and Financial Institutions.
A bill to amend 2000 PA 305, entitled
"Uniform electronic transactions act,"
by amending section 16 (MCL 450.846).
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 16. (1) As used in this section, "transferable record"
means
an electronic record that is meets
both of the following:
(a)
Would be a note under sections 3101 to 3801 article 3 of
the
uniform commercial code, 1962 PA 174, MCL 440.3101 to 440.3801,
440.3605,
or a document under sections 7101 to
7603 article 7 of
the
uniform commercial code, 1962 PA 174, MCL 440.7101 to 440.7603,
440.7702, if the electronic record were in writing.
(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), and a person is
considered to have control of a transferable record, if the
transferable record is created, stored, and assigned in a manner
that all of the following apply:
(a) A single authoritative copy of the transferable record
exists that is unique, identifiable, and, except as otherwise
provided in subdivisions (d), (e), and (f), unalterable.
(b) The authoritative copy identifies the person asserting
control as 1 of the following:
(i) The person to which the transferable record was issued.
(ii) 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 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.
(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.
(f) Any revision of the authoritative copy is readily
identifiable as authorized or unauthorized.
(4) Except as otherwise agreed, a person having control of a
transferable record is the holder, as defined in section 1201 of
the
uniform commercial code, 1962 PA 174, MCL 440.1201, of the
transferable record and has the same rights and defenses as a
holder
of an equivalent record or writing under section 1201 of the
uniform
commercial code, 1962 PA 174, MCL 440.1201, including, if
the
applicable statutory requirements under section 1201 3302(1),
7501,
or 9308 of the uniform commercial code,
1962 PA 174, MCL
440.1201,
440.3302, 440.7501, and 440.9308,
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. 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 writings under
section
1201 of the uniform commercial code. ,
1962 PA 174, MCL
440.1201.
(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. The department of management and budget shall
determine for each department whether, and the extent to which, the
department will create and retain electronic records and convert
written records to electronic records.
(7) As used in this section, "uniform commercial code" means
the uniform commercial code, 1962 PA 174, MCL 440.1101 to 440.9994.
Enacting section 1. This amendatory act does not take effect
unless Senate Bill No. 547
of the 97th Legislature is enacted into law.