Electronic Signatures The USA

Electronic signatures in the United States of America are governed primarily by two laws namely, the ESIGN Act 2000 and the UETA ACT 2000. The ESIGN Act is a federal law and therefore all 50 states have to abide by the spirit and meaning of the law, though some states may differ in how they implement this law. The other law is the Uniform Electronic Transactions Act (UETA), which focuses on the retention of 'paper' records and determining the validity of the electronic signatures. Some states such as New York - have the Esign & Electronic Signatures and Records Act (ESRA). - and Illinois has the - Electronic Commerce Security Act (ECSA) these states have implemented their own versions of these laws but they are all similar to that implemented by the Federal government.

What constitutes a valid signature

According to the ESIGN Act valid electronic signatures have the following parameters

1. Intent to Sign
2. Clear signature association
3. The signature association must indicate:
   • Who each signing party is
   • Dates, time stamps, IP addresses and fingerprints
   • A full audit log or audit trail
4. Consent to do business electronically
5. Record retention

Admissibility of Electronic signatures

Both ESIGN and UETA speaks to the fact that electronic documents and e-signatures are recognized as having the same legal standing as traditional wet-ink signature. These documents can't be rejected on account of them being electronic and are seen as legally binding. In this context they can be presented as evidence in a court of law.

Limitations

Some documents cannot be signed with electronic signatures. These include:

• Adoption, divorce and other family law documents
• Select types of real estate transfer documents and other real estate agreements
• Court orders, notices, and other court documents like pleadings and motions
• Powers of attorney
• Wills, codicils, and testamentary trusts