---
kind: "section"
citation: "15 U.S.C. § 7021"
title: "15"
title_heading: "Commerce and Trade"
number: "7021"
heading: "Transferable records"
release: "119-102"
date: "2026-07-12"
url: "https://uscodex.org/usc/15/7021"
units:
  - "Chapter 96 — Electronic Signatures in Global and National Commerce"
  - "Subchapter II — Transferable Records"
---

# §7021. Transferable records

- (a) **Definitions—** For purposes of this section:
  - (1) **Transferable record—** The term “transferable [record](/usc/15/7006.md?p=9)” means an [electronic record](/usc/15/7006.md?p=4) that—
    - (A) would be a note under Article 3 of the Uniform Commercial Code if the [electronic record](/usc/15/7006.md?p=4) were in writing;
    - (B) the issuer of the [electronic record](/usc/15/7006.md?p=4) expressly has agreed is a transferable [record](/usc/15/7006.md?p=9); and
    - (C) relates to a loan secured by real property.

    A transferable [record](/usc/15/7006.md?p=9) may be executed using an [electronic signature](/usc/15/7006.md?p=5).

  - (2) **Other definitions—** The terms “[electronic record](/usc/15/7006.md?p=4)”, “[electronic signature](/usc/15/7006.md?p=5)”, and “[person](/usc/15/7006.md?p=8)” have the same meanings provided in [section 7006 of this title](/usc/15/7006.md).
- (b) **Control—** A [person](/usc/15/7006.md?p=8) has control of a transferable [record](/usc/15/7006.md?p=9) if a system employed for evidencing the transfer of interests in the transferable [record](/usc/15/7006.md?p=9) reliably establishes that [person](/usc/15/7006.md?p=8) as the [person](/usc/15/7006.md?p=8) to which the transferable [record](/usc/15/7006.md?p=9) was issued or transferred.
- (c) **Conditions—** A system satisfies [subsection (b)](#b), and a [person](/usc/15/7006.md?p=8) is deemed to have control of a transferable [record](/usc/15/7006.md?p=9), if the transferable [record](/usc/15/7006.md?p=9) is created, stored, and assigned in such a manner that—
  - (1) a single authoritative copy of the transferable [record](/usc/15/7006.md?p=9) exists which is unique, identifiable, and, except as otherwise provided in paragraphs [(4)](#c-4), [(5)](#c-5), and [(6)](#c-6), unalterable;
  - (2) the authoritative copy identifies the [person](/usc/15/7006.md?p=8) asserting control as—
    - (A) the [person](/usc/15/7006.md?p=8) to which the transferable [record](/usc/15/7006.md?p=9) was issued; or
    - (B) if the authoritative copy indicates that the transferable [record](/usc/15/7006.md?p=9) has been transferred, the [person](/usc/15/7006.md?p=8) to which the transferable [record](/usc/15/7006.md?p=9) was most recently transferred;
  - (3) the authoritative copy is communicated to and maintained by the [person](/usc/15/7006.md?p=8) asserting control or its designated custodian;
  - (4) copies or revisions that add or change an identified assignee of the authoritative copy can be made only with the consent of the [person](/usc/15/7006.md?p=8) asserting control;
  - (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
  - (6) any revision of the authoritative copy is readily identifiable as authorized or unauthorized.
- (d) **Status as holder—** Except as otherwise agreed, a [person](/usc/15/7006.md?p=8) having control of a transferable [record](/usc/15/7006.md?p=9) is the holder, as defined in section 1–201(20) of the Uniform Commercial Code, of the transferable [record](/usc/15/7006.md?p=9) and has the same rights and defenses as a holder of an equivalent [record](/usc/15/7006.md?p=9) or writing under the Uniform Commercial Code, including, if the applicable statutory [requirements](/usc/15/7006.md?p=10) under section 3–302(a), 9–308, or revised section 9–330 of the Uniform Commercial Code are satisfied, the rights and defenses of a holder in due course or a purchaser, respectively. Delivery, possession, and endorsement are not required to obtain or exercise any of the rights under this subsection.
- (e) **Obligor rights—** Except as otherwise agreed, an obligor under a transferable [record](/usc/15/7006.md?p=9) has the same rights and defenses as an equivalent obligor under equivalent [records](/usc/15/7006.md?p=9) or writings under the Uniform Commercial Code.
- (f) **Proof of control—** If requested by a [person](/usc/15/7006.md?p=8) against which enforcement is sought, the [person](/usc/15/7006.md?p=8) seeking to enforce the transferable [record](/usc/15/7006.md?p=9) shall provide reasonable proof that the [person](/usc/15/7006.md?p=8) is in control of the transferable [record](/usc/15/7006.md?p=9). Proof may include access to the authoritative copy of the transferable [record](/usc/15/7006.md?p=9) and related business [records](/usc/15/7006.md?p=9) sufficient to review the terms of the transferable [record](/usc/15/7006.md?p=9) and to establish the identity of the [person](/usc/15/7006.md?p=8) having control of the transferable [record](/usc/15/7006.md?p=9).
- (g) **UCC references—** For purposes of this subsection, all references to the Uniform Commercial Code are to the Uniform Commercial Code as in effect in the jurisdiction the law of which governs the transferable [record](/usc/15/7006.md?p=9).

## Source credit

(Pub. L. 106–229, title II, § 201, June 30, 2000, 114 Stat. 473.)

## Notes

### Statutory Notes and Related Subsidiaries

### Effective Date

Pub. L. 106–229, title II, § 202, June 30, 2000, 114 Stat. 475, provided that: “This title [enacting this subchapter] shall be effective 90 days after the date of enactment of this Act [June 30, 2000].”