application for a loan, or a loan made, pursuant to title IV of the Higher Education Act of 1965, section 101(c) of this Act shall not apply until the earlier of— (A) such time as the Secretary of Education publishes revised promissory notes under section 432(m) of the Higher Education Act of 1965; or (B) one year after the date of enactment of this Act. TITLE II-TRANSFERABLE RECORDS SEC. 201. [15 U.S.C. 7021] TRANSFERABLE RECORDS. record" means an electronic record that term "transferable (A) would be a note under Article 3 of the Uniform Commercial Code if the electronic record were in writing; (B) the issuer of the electronic record expressly has agreed is a transferable record; and (C) relates to a loan secured by real property. A transferable record may be executed using an electronic signature. (2) OTHER DEFINITIONS.-The terms "electronic record", "electronic signature", and "person" have the same meanings provided in section 106 of this Act. (b) CONTROL.-A person has control of a transferable record if a system employed for evidencing the transfer of interests in the transferable record reliably establishes that person as the person to which the transferable record was issued or transferred. (c) CONDITIONS.-A system satisfies subsection (b), and a person is deemed to have control of a transferable record, if the transferable record is created, stored, and assigned in such a manner that (1) a single authoritative copy of the transferable record exists which is unique, identifiable, and, except as otherwise provided in paragraphs (4), (5), and (6), unalterable; (2) the authoritative copy identifies the person asserting control as (A) the person to which the transferable record was issued; or (B) if the authoritative copy indicates that the transferable record has been transferred, the person to which the transferable record was most recently transferred; (3) the authoritative copy is communicated to and maintained by the person 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 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 having control of a transferable record is the holder, as defined in section 1-201(20) of the Uniform Commercial Code, of the transferable record and has the same rights and defenses as a holder of an equivalent record or writing under the Uniform Commercial Code, including, if the applicable statutory requirements 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 has the same rights and defenses as an equivalent obligor under equivalent records or writings under the Uniform Commercial Code. (f) PROOF OF CONTROL.-If requested by a person against which enforcement is sought, the person seeking to enforce the transferable record shall provide reasonable proof that the person is in control of the transferable record. Proof may include access to the authoritative copy of the transferable record and related business records sufficient to review the terms of the transferable record and to establish the identity of the person having control of the transferable record. (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. SEC. 202. [15 U.S.C. 7021 note] EFFECTIVE DATE. This title shall be effective 90 days after the date of enactment of this Act. TITLE III-PROMOTION OF INTER NATIONAL ELECTRONIC COMMERCE SEC. 301. [15 U.S.C. 7031] PRINCIPLES GOVERNING THE USE OF ELECTRONIC SIGNATURES IN INTERNATIONAL TRANSACTIONS. (a) PROMOTION OF ELECTRONIC SIGNATURES. (1) REQUIRED ACTIONS.-The Secretary of Commerce shall promote the acceptance and use, on an international basis, of electronic signatures in accordance with the principles specified in paragraph (2) and in a manner consistent with section 101 of this Act. The Secretary of Commerce shall take all actions necessary in a manner consistent with such principles to eliminate or reduce, to the maximum extent possible, the impediments to commerce in electronic signatures, for the purpose of facilitating the development of interstate and foreign commerce. (2) PRINCIPLES.-The principles specified in this paragraph are the following: (A) Remove paper-based obstacles to electronic transactions by adopting relevant principles from the Model Law on Electronic Commerce adopted in 1996 by the United Nations Commission on International Trade Law. (B) Permit parties to a transaction to determine the appropriate authentication technologies and implementation models for their transactions, with assurance that those technologies and implementation models will be recognized and enforced. (C) Permit parties to a transaction to have the opportunity to prove in court or other proceedings that their authentication approaches and their transactions are valid. (D) Take a nondiscriminatory approach to electronic signatures and authentication methods from other jurisdictions. (b) CONSULTATION.-In conducting the activities required by this section, the Secretary shall consult with users and providers of electronic signature products and services and other interested persons. (c) DEFINITIONS.-As used in this section, the terms "electronic record" and "electronic signature" have the same meanings provided in section 106 of this Act. TITLE IV-COMMISSION ON ONLINE CHILD PROTECTION SEC. 401. AUTHORITY TO ACCEPT GIFTS. [Section 401 amended section 1405 of the Child Online Protection Act (47 U.S.C. 231 note). See footnote to section 231 of the Communications Act of 1934.] |