According to the FDIC Compliance Manual, electronic signatures are, “…any electronic…symbol or process attached to or logically associated with a contract or other record and executed or adopted by a person with the intent to sign the [electronic] record.” E-signatures allow users to sign electronic documents with just a few simple clicks.
With the proper electronic signature capabilities, professionals can quickly sign forms and return newly signed document in just a matter of minutes. However, the idea of e-signatures has left many with the question – are electronic signatures legal?
The answer is yes. Electronic signatures are considered 100% legal. Back in 2000, the Federal Deposit Insurance Corporation (FDIC) signed The Electronic Signatures in Global and National Commerce Act – also known as the E-Sign Act. This allows a general rule of validity to electronic records and signatures. In layman’s terms – if you are legally required to provide information in writing, you may choose to do so electronically.
While the laws surrounding e-signatures and forms will vary state to state, the general purpose of The Electronic Signatures in Global and National Commerce Act is to preserve the legal validity of electronic documents. In the first section of this act (101.a), it is clearly stated that electronic records are just as relevant as their paper counterparts – and should be given the same level of scrutiny.
So if you are questioning the legality of an electronic signature – think again!
To learn more about electronic signatures/forms, document management, or any of our other process improving solutions – contact our Account Executives today.