41-07-05. (7-105) Reissuance in alternative medium

41-07-05. (7-105) Reissuance in alternative medium

1. 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:

a. The person entitled under the electronic document surrenders control of the

document to the issuer; and

b. The tangible document when issued contains a statement that it is issued in

substitution for the electronic document.

2. Upon issuance of a tangible document of title in substitution for an electronic

document of title in accordance with subsection 1:

a. The electronic document ceases to have any effect or validity; and

b. 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. 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:

a. The person entitled under the tangible document surrenders possession of the

document to the issuer; and

b. The electronic document when issued contains a statement that it is issued in

substitution for the tangible document.

4. Upon issuance of an electronic document of title in substitution for a tangible

document of title in accordance with subsection 3:

a. The tangible document ceases to have any effect or validity; and

b. 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.