1. (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.

2. (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.

3. (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.

4. (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.

HISTORY: 2014 Act No. 213 (S.343), Section 2, eff October 1, 2014.

Editor's Note

Prior Laws: Former Section 36-7-105 was titled Construction against negative implication, and had the following history: 1962 Code Section 10.7-105; 1966 (54) 2716; omitted by 2014 Act No. 213, Section 2.

2014 Act No. 213, Section 51, provides as follows:

"SECTION 51. This act becomes effective on October 1, 2014. It applies to transactions entered into and events occurring after that date."