(a) Upon request of a person entitled under an electronic document of title, the issuer of the electronic document may issue a tangible document of title as a substitute for the electronic document if:

1. (1) the person entitled under the electronic document surrenders control of the document to the issuer; and
2. (2) the tangible document when issued contains a statement that it is issued in substitution for the electronic document.

(b) Upon issuance of a tangible document of title in substitution for an electronic document of title in accordance with subsection (a):

1. (1) the electronic document ceases to have any effect or validity; and
2. (2) the person that procured issuance of the tangible document warrants to all subsequent persons entitled under the tangible document that the warrantor was a person entitled under the electronic document when the warrantor surrendered control of the electronic document to the issuer.

(c) Upon request of a person entitled under a tangible document of title, the issuer of the tangible document may issue an electronic document of title as a substitute for the tangible document if:

1. (1) the person entitled under the tangible document surrenders possession of the document to the issuer; and
2. (2) the electronic document when issued contains a statement that it is issued in substitution for the tangible document.

(d) Upon issuance of an electronic document of title in substitution for a tangible document of title in accordance with subsection (c):

1. (1) the tangible document ceases to have any effect or validity; and

2. (2) the person that procured issuance of the electronic document warrants to all subsequent persons entitled under the electronic document that the warrantor was a person entitled under the tangible document when the warrantor surrendered possession of the tangible document to the issuer.

   Formerly: Acts 1963, c.317, s.7-105. As amended by P.L.152-1986, SEC.247; P.L.143-2007, SEC.28.