It governs transactions relating to the conduct of business, consumer, or commercial affairs between two or more persons. E-commerce is optional; all parties to a transaction must agree before it can be used.

The U.S. Electronic Signatures in Global and National Commerce (ESIGN) Act in 2000 legislated that electronic signatures are legal in every state and U.S. territory where federal law applies.

The Electronic Signatures in Global and National Commerce Act, 15 U.S.C. § 7001, et seq. , (E-Sign Act), signed into law June 30, 2000, provides a general rule of validity for electronic records and signatures for transactions in or affecting interstate or foreign commerce.

For example, both E-SIGN and CUETA specifically exclude transactions involving probate documents, divorce documents, real estate foreclosure proceedings, and transactions governed by Articles 3-9 of the Uniform Commercial Code (UCC).

The E-Sign Act contains extensive provisions to protect consumers. These special consumer provisions apply to transactions such as home mortgage loans and residential leases, but do not apply to business-to-business transactions such as shopping center leases or project construction loans.

E-SIGN ACT COMPLIANCE REQUIREMENTS

1. Step 1 – Availability of Paper Delivery or Paper Copies.
2. Step 2 – Consent Choices.
3. Step 3 – Consumer Actions.
4. Step 4 – Hardware/Software Requirements.
5. Step 5 – Affirmatively Consent.
6. Step 6 – “After Consent” Disclosure.

States That Allow Electronic Signature or do not Require a Signature or Filing

The E-Sign Act requires a financial institution to maintain electronic records accurately reflecting the information contained in applicable contracts, notices or disclosures and that they remain accessible to all persons who are legally entitled to access for the period required by law in a form that is capable of …

ESIGN treats commercial and consumer transactions differently, however. For commercial transactions, the parties’ agreement to conduct the transaction will be implied from the facts and circumstances surrounding the transaction or by an express statement of intent.

ESIGN Act. (ESIGNature Act) A law enacted by the U.S. government on October 1, 2000 that gives electronic signatures the same legality as one that is handwritten.

E-Sign Act Law and Legal Definition. E-Sign Act is a short name for the Electronic Signatures in Global and National Commerce Act, a 2000 federal statute that establishes the legal equivalency of electronic contracts, electronic signatures, and other electronic records with their paper counterparts.

The E-SIGN Act, or Electronic Signatures in Global and National Commerce Act, establishes that electronic signatures, contracts and records are valid or enforceable if they meet certain criteria. The act is applying to an increasing number of Ninth District banks as they expand the product lines and services they offer electronically.

Compliance with eCertainty ®. The Uniform Electronic Transaction Act (UETA) and the Federal Electronic Signatures in Global and National Commerce Act (ESIGN) empower electronic documents and electronic signatures to be used with the same effect as paper documents and ink signatures.