<html xmlns="http://www.w3.org/1999/xhtml" lang="en-US"><head><meta charset="UTF-8"><meta http-equiv='content-language' content='en-us'/><title>SDLRC - Codified Law 57A-7-106 - Control of electronic document of title.</title><meta name="Generator" content="PowerTools for Open XML"><style>span { white-space: pre-wrap; } p.sa7171f8a96bc42d397a7d5192c2cfee1Normal { text-indent: 0.50in; text-align: justify; font-family: 'Times New Roman', 'serif'; font-size: 12pt; line-height: 108%; margin-top: 0; margin-left: 0; margin-right: 0; margin-bottom: .001pt; } span.sa7171f8a96bc42d397a7d5192c2cfee1SENU { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } span.sa7171f8a96bc42d397a7d5192c2cfee1CL { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } p.sa7171f8a96bc42d397a7d5192c2cfee1Statute { text-indent: 0.50in; text-align: justify; font-family: 'Times New Roman', 'serif'; 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font-family: 'Times New Roman', 'serif'; font-size: 12pt; line-height: 108%; margin-top: 0; margin-left: 0; margin-right: 0; margin-bottom: .001pt; } span.sa7171f8a96bc42d397a7d5192c2cfee1DefaultParagraphFont-000001 { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } span.sa7171f8a96bc42d397a7d5192c2cfee1SCL { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: normal; margin: 0; padding: 0; } body { text-decoration-skip-ink: none; } </style><meta name="viewport" content="width=device-width, initial-scale=1"><meta name="twitter:card" content="summary"><meta property="og:title" content="SD 57A-7-106 - Control of electronic document of title."><meta property="og:description" content="SDLRC Codified Law 57A-7-106 - Control of electronic document of title."><meta property="og:type" content="website"><meta property="og:url" content="https://sdlegislature.gov/Statutes/57A-7-106"><meta property="og:image" content="https://lawmakerdocuments.blob.core.usgovcloudapi.net/photos/logoshape.webp"><meta property="og:site_name" content="South Dakota Legislature"></head><body><div><p dir="ltr" class="sa7171f8a96bc42d397a7d5192c2cfee1Normal"><a href="https://sdlegislature.gov/Statutes?Statute=57A-7-106" rel="noopener"><span class="sa7171f8a96bc42d397a7d5192c2cfee1SENU">57A-7-106</span></a><span xml:space="preserve" class="sa7171f8a96bc42d397a7d5192c2cfee1SENU">. </span><span class="sa7171f8a96bc42d397a7d5192c2cfee1CL">Control of electronic document of title.</span></p><p dir="ltr" class="sa7171f8a96bc42d397a7d5192c2cfee1Statute"><span class="sa7171f8a96bc42d397a7d5192c2cfee1DefaultParagraphFont">(a) A person has control of an electronic document of title if a system employed for evidencing the transfer of interests in the electronic document reliably establishes that person as the person to which the electronic document was issued or transferred.</span></p><p dir="ltr" class="sa7171f8a96bc42d397a7d5192c2cfee1Statute"><span class="sa7171f8a96bc42d397a7d5192c2cfee1DefaultParagraphFont">(b) A system satisfies subsection (a), and a person has control of an electronic document of title, if the document is created, stored, and transferred in a manner that:</span></p><p dir="ltr" class="sa7171f8a96bc42d397a7d5192c2cfee1StatuteNumber1"><span class="sa7171f8a96bc42d397a7d5192c2cfee1DefaultParagraphFont">(1)    A single authoritative copy of the document exists which is unique, identifiable, and, except as otherwise provided in paragraphs (4), (5), and (6), unalterable;</span></p><p dir="ltr" class="sa7171f8a96bc42d397a7d5192c2cfee1StatuteNumber1"><span class="sa7171f8a96bc42d397a7d5192c2cfee1DefaultParagraphFont">(2)    The authoritative copy identifies the person asserting control as:</span></p><p dir="ltr" class="sa7171f8a96bc42d397a7d5192c2cfee1StatuteNumber2"><span class="sa7171f8a96bc42d397a7d5192c2cfee1DefaultParagraphFont">(A)    The person to which the document was issued; or</span></p><p dir="ltr" class="sa7171f8a96bc42d397a7d5192c2cfee1StatuteNumber2"><span class="sa7171f8a96bc42d397a7d5192c2cfee1DefaultParagraphFont">(B)    If the authoritative copy indicates that the document has been transferred, the person to which the document was most recently transferred;</span></p><p dir="ltr" class="sa7171f8a96bc42d397a7d5192c2cfee1StatuteNumber1"><span class="sa7171f8a96bc42d397a7d5192c2cfee1DefaultParagraphFont">(3)    The authoritative copy is communicated to and maintained by the person asserting control or its designated custodian;</span></p><p dir="ltr" class="sa7171f8a96bc42d397a7d5192c2cfee1StatuteNumber1"><span class="sa7171f8a96bc42d397a7d5192c2cfee1DefaultParagraphFont">(4)    Copies or amendments that add or change an identified transferee of the authoritative copy can be made only with the consent of the person asserting control;</span></p><p dir="ltr" class="sa7171f8a96bc42d397a7d5192c2cfee1StatuteNumber1"><span class="sa7171f8a96bc42d397a7d5192c2cfee1DefaultParagraphFont">(5)    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</span></p><p dir="ltr" class="sa7171f8a96bc42d397a7d5192c2cfee1StatuteNumber1"><span class="sa7171f8a96bc42d397a7d5192c2cfee1DefaultParagraphFont">(6)    Any amendment of the authoritative copy is readily identifiable as authorized or unauthorized.</span></p><p dir="ltr" class="sa7171f8a96bc42d397a7d5192c2cfee1Statute"><span class="sa7171f8a96bc42d397a7d5192c2cfee1DefaultParagraphFont">(c) A system satisfies subsection (a), and a person has control of an electronic document of title, if an authoritative electronic copy of the document, a record attached to or logically associated with the electronic copy, or a system in which the electronic copy is recorded:</span></p><p dir="ltr" class="sa7171f8a96bc42d397a7d5192c2cfee1StatuteNumber1"><span class="sa7171f8a96bc42d397a7d5192c2cfee1DefaultParagraphFont">(1)    Enables the person readily to identify each electronic copy as either an authoritative copy or a nonauthoritative copy;</span></p><p dir="ltr" class="sa7171f8a96bc42d397a7d5192c2cfee1StatuteNumber1"><span class="sa7171f8a96bc42d397a7d5192c2cfee1DefaultParagraphFont">(2)    Enables the person readily to identify itself in any way, including by name, identifying number, cryptographic key, office, or account number, as the person to which each authoritative electronic copy was issued or transferred; and</span></p><p dir="ltr" class="sa7171f8a96bc42d397a7d5192c2cfee1StatuteNumber1"><span class="sa7171f8a96bc42d397a7d5192c2cfee1DefaultParagraphFont">(3)    Gives the person exclusive power, subject to subsection (d), to:</span></p><p dir="ltr" class="sa7171f8a96bc42d397a7d5192c2cfee1StatuteNumber2"><span class="sa7171f8a96bc42d397a7d5192c2cfee1DefaultParagraphFont">(A)    Prevent others from adding or changing the person to which each authoritative electronic copy has been issued or transferred; and</span></p><p dir="ltr" class="sa7171f8a96bc42d397a7d5192c2cfee1StatuteNumber2"><span class="sa7171f8a96bc42d397a7d5192c2cfee1DefaultParagraphFont">(B)    Transfer control of each authoritative electronic copy.</span></p><p dir="ltr" class="sa7171f8a96bc42d397a7d5192c2cfee1Statute"><span class="sa7171f8a96bc42d397a7d5192c2cfee1DefaultParagraphFont">(d) Subject to subsection (e), a power is exclusive under subsection (c)(3)(A) and (B) even if:</span></p><p dir="ltr" class="sa7171f8a96bc42d397a7d5192c2cfee1StatuteNumber1"><span class="sa7171f8a96bc42d397a7d5192c2cfee1DefaultParagraphFont">(1)    The authoritative electronic copy, a record attached to or logically associated with the authoritative electronic copy, or a system in which the authoritative electronic copy is recorded, limits the use of the document of title or has a protocol that is programmed to cause a change, including a transfer or loss of control; or</span></p><p dir="ltr" class="sa7171f8a96bc42d397a7d5192c2cfee1StatuteNumber1"><span class="sa7171f8a96bc42d397a7d5192c2cfee1DefaultParagraphFont">(2)    The power is shared with another person.</span></p><p dir="ltr" class="sa7171f8a96bc42d397a7d5192c2cfee1Statute"><span class="sa7171f8a96bc42d397a7d5192c2cfee1DefaultParagraphFont">(e) A power of a person is not shared with another person under subsection (d)(2) and the person's power is not exclusive if:</span></p><p dir="ltr" class="sa7171f8a96bc42d397a7d5192c2cfee1StatuteNumber1"><span class="sa7171f8a96bc42d397a7d5192c2cfee1DefaultParagraphFont">(1)    The person can exercise the power only if the power also is exercised by the other person; and</span></p><p dir="ltr" class="sa7171f8a96bc42d397a7d5192c2cfee1StatuteNumber1"><span class="sa7171f8a96bc42d397a7d5192c2cfee1DefaultParagraphFont">(2)    The other person:</span></p><p dir="ltr" class="sa7171f8a96bc42d397a7d5192c2cfee1StatuteNumber2"><span class="sa7171f8a96bc42d397a7d5192c2cfee1DefaultParagraphFont">(A)    Can exercise the power without exercise of the power by the person; or</span></p><p dir="ltr" class="sa7171f8a96bc42d397a7d5192c2cfee1StatuteNumber2"><span class="sa7171f8a96bc42d397a7d5192c2cfee1DefaultParagraphFont">(B)    Is the transferor to the person of an interest in the document of title.</span></p><p dir="ltr" class="sa7171f8a96bc42d397a7d5192c2cfee1Statute"><span class="sa7171f8a96bc42d397a7d5192c2cfee1DefaultParagraphFont">(f) If a person has the powers specified in subsection (c)(3)(A) and (B), the powers are presumed to be exclusive.</span></p><p dir="ltr" class="sa7171f8a96bc42d397a7d5192c2cfee1Statute"><span class="sa7171f8a96bc42d397a7d5192c2cfee1DefaultParagraphFont">(g) A person has control of an electronic document of title if another person, other than the transferor to the person of an interest in the document:</span></p><p dir="ltr" class="sa7171f8a96bc42d397a7d5192c2cfee1StatuteNumber1"><span class="sa7171f8a96bc42d397a7d5192c2cfee1DefaultParagraphFont">(1)    Has control of the document and acknowledges that it has control on behalf of the person; or</span></p><p dir="ltr" class="sa7171f8a96bc42d397a7d5192c2cfee1StatuteNumber1"><span class="sa7171f8a96bc42d397a7d5192c2cfee1DefaultParagraphFont">(2)    Obtains control of the document after having acknowledged that it will obtain control of the document on behalf of the person.</span></p><p dir="ltr" class="sa7171f8a96bc42d397a7d5192c2cfee1Statute"><span class="sa7171f8a96bc42d397a7d5192c2cfee1DefaultParagraphFont">(h) A person that has control under this section is not required to acknowledge that it has control on behalf of the person.</span></p><p dir="ltr" class="sa7171f8a96bc42d397a7d5192c2cfee1Statute"><span xml:space="preserve" class="sa7171f8a96bc42d397a7d5192c2cfee1DefaultParagraphFont">(i) If a person acknowledges that it has or will obtain control on behalf of another person, unless the person otherwise agrees or law other than this chapter or chapter </span><a href="https://sdlegislature.gov/Statutes?Statute=57A-9" rel="noopener"><span class="sa7171f8a96bc42d397a7d5192c2cfee1DefaultParagraphFont">57A-9</span></a><span xml:space="preserve" class="sa7171f8a96bc42d397a7d5192c2cfee1DefaultParagraphFont"> otherwise provides, the person does not owe any duty to another person and is not required to confirm the acknowledgement to any other person.</span></p><p dir="ltr" class="sa7171f8a96bc42d397a7d5192c2cfee1Normal"><span xml:space="preserve" class="sa7171f8a96bc42d397a7d5192c2cfee1000000"> </span></p><p dir="ltr" class="sa7171f8a96bc42d397a7d5192c2cfee1NoIndent"><span xml:space="preserve" class="sa7171f8a96bc42d397a7d5192c2cfee1DefaultParagraphFont-000001">Source: </span><span class="sa7171f8a96bc42d397a7d5192c2cfee1SCL">SL 2009, ch 254, § 7-106; SL 2024, ch 198, § 37.</span></p></div></body></html>