Section 2260.312 - Transferable records(a) Control.--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.(b) Compliance.--A system satisfies subsection (a) 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 all of the following paragraphs apply: (1) A single authoritative copy of the transferable record exists which is unique, identifiable and, except as otherwise provided in paragraphs (4), (5) and (6), unalterable.(2) The authoritative copy identifies the person asserting control as: (i) the person to which the transferable record was issued; or(ii) if the authoritative copy indicates that the transferable record has been transferred, the person to which the transferable record was most recently transferred.(3) The authoritative copy is communicated to and maintained by the person asserting control or that person's designated custodian.(4) Copies or revisions which add or change an identified assignee of the authoritative copy can be made only with the consent of the person asserting control.(5) Each copy of the authoritative copy and any copy of a copy is readily identifiable as a copy which is not the authoritative copy.(6) Any revision of the authoritative copy is readily identifiable as authorized or unauthorized.(c) Holders.--Except as otherwise agreed, a person having control of a transferable record is the holder, as defined in paragraph (2) of the definition of "holder" in 13 Pa.C.S. § 1201 (relating to general definitions), of the transferable record and has the same rights and defenses as a holder of an equivalent record or writing under 13 Pa.C.S. (relating to commercial code), including, if the applicable statutory requirements are satisfied, sections 3302(a) (relating to holder in due course), 7501 ( relating to form of negotiation and requirements of "due negotiation") and 9308 (relating to purchase of chattel paper and instruments). Delivery, possession and endorsement are not required to obtain or exercise any of the rights under this subsection.(d) Obligors.--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 13 Pa.C.S.(e) Proof.--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.(f) Definition.--As used in this section, the term "transferable record" means an electronic record:(1) which would be a note under 13 Pa.C.S. Div. 3 (relating to negotiable instruments) or a document under 13 Pa.C.S. Div. 7 (relating to warehouse receipts, bills of lading and other documents of title) if the electronic record were in writing; and(2) the issuer of the electronic record expressly has agreed is a transferable record. 1999, Dec. 16, P.L. 971, No. 69, § 312, effective in 30 days.