                                 CODE OF VIRGINIA

CONTROL OF ELECTRONIC DOCUMENT (§ 8.7-106)

1. A person has control of an electronic document 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.

2. A system satisfies subsection (1), and a person has control of an electronic
document, if the document is created, stored, and transferred in such a manner
that:

   a. a single authoritative copy of the document exists that is unique,
   identifiable, and, except as otherwise provided in subdivisions (c), (d), and
   (e), unalterable;

   b. the authoritative copy identifies the person asserting control as:

   i. the person to whom the document was issued; or

      ii. if the authoritative copy indicates that the document has been
      transferred, the person to whom the document was most recently transferred;

   c. the authoritative copy is communicated to and maintained by the person
   asserting control or his designated custodian;

   d. 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;

   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 amendment of the authoritative copy is readily identifiable as
   authorized or unauthorized.

3. A system satisfies subsection (1), 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:

   a. enables the person readily to identify each electronic copy as either an
   authoritative copy or a nonauthoritative copy;

   b. 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

   c. gives the person exclusive power, subject to subsection (4), to:

   i. prevent others from adding or changing the person to which each
   authoritative electronic copy has been issued or transferred; and

      ii. transfer control of each authoritative electronic copy.

4. Subject to subsection (5), a power is exclusive under subsection (3)(c)(i)
and (ii) even if:

   a. the authoritative electronic copy, a record attached to or legally
   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

   b. the power is shared with another person.

5. A power of a person is not shared with another person under subsection (4)(b)
and the person&#8217;s power is not exclusive if:

   a. the person can exercise the power only if the power is also exercised by
   the other person; and

   b. the other person:

   i. can exercise the power without exercise of the power by the person; or

      ii. is the transferor to the person of an interest in the document of title.

6. If a person has the powers specified in subsection (3)(c)(i) and (ii), the
powers are presumed to be exclusive.

7. 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:

   a. has control of the document and acknowledges that it has control on behalf
   of the person; or

   b. obtains control of the document after having acknowledged that it will
   obtain control of the document on behalf of the person.

8. A person that has control under this section is not required to acknowledge
that it has control on behalf of another person.

9. 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 title
or Title 8.9 otherwise provides, the person does not owe any duty to the other
person and is not required to confirm the acknowledgement to any other person.

HISTORY: 2004, c. 200; 2024, c. 652.