9-16-14. Time and place of sending and receipt.
931 words·~4 min read·
/nd/title-09/chapter-9-16-electronic-transactions/9-16-14·A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
1. Unless otherwise agreed between the sender and the recipient, an electronic record is
sent when the record:
a. Is addressed properly or otherwise directed properly to an information processing
system that the recipient has designated or uses for the purpose of receiving
electronic records or information of the type sent and from which the recipient is
able to retrieve the electronic record;
b. Is in a form capable of being processed by that system; and
c. Enters an information processing system outside the control of the sender or of a
person that sent the electronic record on behalf of the sender or enters a region
of the information processing system designated or used by the recipient which is
under the control of the recipient. 2. Unless otherwise agreed between a sender and the recipient, an electronic record is
received when:
a. The record enters an information processing system that the recipient has
designated or uses for the purpose of receiving electronic records or information
of the type sent and from which the recipient is able to retrieve the electronic
record; and
b. The record is in a form capable of being processed by that system. 3. Subsection 2 applies even if the place the information processing system is located is
different from the place the electronic record is deemed to be received under
subsection 4. 4. Unless otherwise expressly provided in the electronic record or agreed between the
sender and the recipient, an electronic record is deemed to be sent from the sender's
place of business and to be received at the recipient's place of business. For purposes
of this subsection:
a. If the sender or recipient has more than one place of business, the place of
business of that person is the place having the closest relationship to the
underlying transaction.
b. If the sender or the recipient does not have a place of business, the place of
business is the sender's or recipient's residence, as the case may be. 5. An electronic record is received under subsection 2 even if no individual is aware of
the record's receipt. 6. Receipt of an electronic acknowledgment from an information processing system
described in subsection 2 establishes that a record was received but, by itself, does
not establish that the content sent corresponds to the content received. 7. If a person is aware that an electronic record purportedly sent under subsection 1, or
purportedly received under subsection 2, was not actually sent or received, the legal
effect of the sending or receipt is determined by other applicable law. Except to the
extent permitted by the other law, this subsection may not be varied by agreement.
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.