Commentary on sections of the Act Section 2: Definition of "electronic trade document" What it means to exercise control
Section 2(3)(a) sets out what it means to exercise control of a trade document in electronic form for the purposes of the Act. A person exercises control when they use, transfer or otherwise dispose of the document (regardless of whether they have a legal right to do so). The concept of control within the meaning of section 2(3)(a) is a factual rather than a legal or rights-based enquiry.
	"Use" of a trade document in electronic form constitutes an independent and separate exercise of control, in addition to transferring or disposing of the document. There may be situations where a party is able to use the document without also being able to transfer or dispose of it. This would be the case where, for example, a party is able to hold or retain the document in order to prevent any dealings in the document by anyone else. In such a case, the party who is able to retain the document has the ability to use the document. For example, where a pledge is granted, the pledgee, to whom the document is transferred, may be precluded by the system from further transferring or disposing of it until the debtor has either repaid the loan or defaulted. This does not, however, change the fact that the document has been transferred to the pledgee. The pledgee retains the document, and can thereby prevent any dealings in the document by anyone else. In this case, the pledgee is using the document, notwithstanding that they cannot transfer or otherwise dispose of it.
	Other examples of acts that constitute "use" of the document include requesting a change of medium, requesting an amendment of the document, adding an indorsement or an acceptance to the document, and presenting or surrendering the document.