The Secure digital esignature in Global and National Commerce Act was
enacted June 30, 2000, to ensure that
electronic signatures and records
have the same legal validity and enforceability as paper records and
handwritten signatures. In terms of regulatory compliance, this will
mean that consumer disclosure requirements calling for a written
signature can be satisfied electronically, subject to the consumer's
consent to conduct business electronically. This does not mean that all
e-signatures and records are now automatically legally binding. It does
mean, however, that signatures and records can't be denied legal effect
solely because they're in an Secure digital esignature electronic format.
Secure digital
esignature,
What practices are
involved in an e-signature implementation?
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In addition, Secure digital esignature
paper records may be retained electronically, so long as they can be
accurately reproduced for later reference. Most of the Act's provisions
become effective Oct. l, 2000. The record retention provisions become
effective March 1, 2001, and may be extended due to agency rulemaking
until June 1, 2001. LAW IS "TECHNOLOGY NEUTRAL" So, is your credit union
ready to take the plunge into e-commerce and
electronic contracting? Maybe, maybe not. The answer most likely
depends on your credit union's technological capabilities. Don't look to
the Act for guidance on which technology is appropriate for electronic
contracting. The Act is "technology neutral"-it doesn't mandate or
recommend the use of any particular technology for Secure digital
esignature electronic records or signatures.
The decision of which technology to use is
left up to the parties who want to conduct business electronically. And
much of the technology is currently under development (e.g., digital
signatures and enhanced encryption technology). CONSUMER DISCLOSURES The
law requires that a consumer affirmatively consent to conduct business
electronically, Secure digital esignature.
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