Electronic Signatures Laws

Transcription

1 White Paper Electrnic Signatures Laws Versin 1.0 Last Updated:

2 Intrductin Mst businesses these days use electrnic signatures fr btaining users cnsent r apprval f dcuments nline. Sme f them still have questins like, are these signatures legally binding, secure, acceptable by curt as evidence. There are different laws and regulatin which insist n the use f electrnic dcuments and electrnic signatures. General requirements fr electrnic signatures are: The signer must intend the signature t have the same frce and effect as a signature affixed by hand. The signature must be unique t the persn using it. The signature must be verifiable as belnging t the user. The signature must be under the sle cntrl f the persn using it. The signature must be attached r linked t the dcument in a way that authenticates the integrity f the electrnic signature and dcument cntents. A signature captures a persn s intent t apprve, authenticate r agree t the cntents f a dcument. It must be able t demnstrate that the intent was captured. Signed dcuments can be used as evidence in the curt f laws. Authenticity f a dcument is a cncern t ensure the accuracy f a signed dcument after it has been signed. General requirements fr electrnic dcuments are: The electrnic dcument, with r withut an electrnic signature, must remain accurate and unchanged ver time. The electrnic dcument, with r withut an electrnic signature, must remain accessible ver time. Let us first understand what an Electrnic Signature is and what is an electrnic recrd. Accrding t Electrnic Signatures in Glbal and Natinal Cmmerce Act [ESIGN] The term 'electrnic recrd' means a cntract r ther recrd created, generated, sent, cmmunicated, received, r stred by electrnic 2010, SutiSft Inc, All Rights Reserved. Page 1

3 The term 'electrnic signature' means an electrnic sund, symbl, r prcess, attached t r lgically assciated with a cntract r ther recrd and executed r adpted by a persn with the intent t sign the recrd. The ESIGN act was first enhanced n June 30, 2000 t facilitate the use f electrnic recrds and signatures in interstate and freign cmmerce by ensuring the validity and legal effect f cntracts entered int electrnically. ESIGN Accrding t Unifrm Electrnic Transactins Act [UETA] Electrnic recrd means a recrd created, generated, sent, cmmunicated, received, r stred by electrnic means. Electrnic signature means an electrnic sund, symbl, r prcess attached t r lgically assciated with a recrd and executed r adpted by a persn with the intent t sign the recrd. The UETA was prpsed by the Natinal Cnference f Cmmissiners n Unifrm State Laws (NCCUSL) and since then 48 States and prvinces have adpted it int their wn laws. It supprts the validity f electrnic cntracts as a viable medium f agreement and gives electrnic recrds and signatures a legally binding status. The ESIGN Act als: Enables use f electrnic recrds and signatures where laws require dcuments and signatures and parties t agree t use electrnic versins. Enables electrnic transmissin f gvernment mandated disclsures subject t apprpriate cnsent frm recipient. Any recrd may be retained electrnically as lng as it remains accurate and accessible t all entitled parties fr as lng as the recrd is required. Allws fr the use f an electrnic signature fr ntarizatin. Enables use f electrnic prmissry nte fr the purpse f a real estate 2010, SutiSft Inc, All Rights Reserved. Page 2

4 FFIEC Accrding t FFIEC financial institutins shuld peridically Ensure that their infrmatin security prgram: Identifies and assesses the risks assciated with Internet-based prducts and services, Identifies risk mitigatin actins, including apprpriate authenticatin strength, and Measures and evaluates custmer awareness effrts; Adjust, as apprpriate, their infrmatin security prgram in light f any relevant changes in technlgy, the sensitivity f its custmer infrmatin, and internal r external threats t infrmatin; and Implement apprpriate risk mitigatin strategies. t safeguard custmer infrmatin. The Federal Financial Institutins Examinatin Cuncil (FFIEC) was established n March 10, The Cuncil is a frmal interagency bdy empwered t prescribe unifrm principles, standards, and reprt frms fr the federal examinatin f financial institutins by the Bard f Gvernrs f the Federal Reserve System (FRB), the Federal Depsit Insurance Crpratin (FDIC), the Natinal Credit Unin Administratin (NCUA), the Office f the Cmptrller f the Currency (OCC), and the Office f Thrift Supervisin (OTS) and t make recmmendatins t prmte unifrmity in the supervisin f financial institutins. MISO The Mrtgage Industry Standards Maintenance Organizatin [MISMO] was established in 1999 by the Mrtgage Bankers Assciatin f America. It develps technlgy standards fr residential and cmmercial standards, emrtgage specificatins, and Infrmatin Security guidelines in USA market. MISMO aims t reduce csts and increase transparency while prmting cnfidence in mrtgages as an asset class fr investrs. MISMO fllws a demcratic apprach t the develpment and maintenance f a cmprehensive set f standards and data pints fr all stages f the 2010, SutiSft Inc, All Rights Reserved. Page 3

5 lan life cycle. MISMO cnstructs a standard apprach whereby tw businessrelated firms can streamline shared data cntained in frms r reprts. MISMO has identified tw deliverables that will enable the mrtgage industry t share data amng trading partners. An XML architecture that encmpasses data riginatin, secndary market and servicing data A data dictinary t prvide business definitins and crrespnding architecture data element tag names References 1. ESIGN Act 2. UETA Act 3. Authenticatin in an Internet Banking Envirnment FFIEC Abut SutiSign SutiSign is an easy t use web based slutin (SaaS)/Enterprise that autmates the dcument apprval prcess. Users can prepare dcuments, add custm data fields, define the apprval rder, add signers, and submit fr apprval. Ntificatins are sent t signers infrming them abut new / pending dcuments fr apprval. Dcuments are signed based n the apprval rder defined. Cmpleted dcuments can be stred in the users & signers accunt fr further reference. Unique Features SutiSign prvides unique features such as: Wizards that enable faster creatin f templates and requests, a Step dcument creatin prcess, multiple dcuments, bimetric authenticatin, LDAP/AD integratin, a built-in library f custm data fields, acceptance mdes, transactin pint integratin, seamless integratin with ther slutins, smartphne cmpatibility, and custmizable reprts that make the dcument apprval prcess simpler and mre efficient. It cmpletely caters t the needs f cmpanies lking fr a slutin t autmate their dcument apprval 2010, SutiSft Inc, All Rights Reserved. Page 4