N.D. Cent. Code § 9-16-15

9-16-15. Transferable records

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

a. Would be a note under chapter 41-03 or a document under chapter 41-07 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, 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 subdivisions d, e, and f,

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 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; and

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 41-01-09, of the transferable record and has the same

rights and defenses as a holder of an equivalent record or writing under title 41,

including, if the applicable statutory requirements under subsection 1 of section

41-03-28, section 41-07-30, or section 41-09-29 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. Delivery, possession, and endorsement

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 title 41.

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.