E-Sign Act

Transaction

An action or set of actions relating to the conduct of business, consumer, or commercial affairs between two or more persons, including any of the following types of conduct: 1. the sale, lease, exchange, licensing, or other disposition of (i) personal property, including goods and intangibles, (ii) services, and (iii) any combination thereof; and 2. the sale, lease, exchange, or other disposition of any interest in real property, or any combination thereof.

What does E-Sign Act stand for?

Electronic Signatures in Global and National Commerce Act

Institutions are encouraged to obtain a separate consent for each online account or service they enter into with a consumer. True False

True

Electronic Agent

A computer program or an electronic or other automated means used independently to initiate an action or respond to electronic records or performances in whole or in part, without review or action by an individual at the time or the action or response.

Electronic Record

A contract or other record created, generated, sent, communicated, received, or stored by electronic means.

To prevent compliance issues with the E-Sign Act, banks should do which of the following? A. Involve their compliance officers. B. Conduct regular audits. C. Review consents and disclosures. D. Assess impact of vendor management changes. E. All of the above.

E

Which of the following are best practices for complying with the record retention requirements of the E-Sign Act? Select all that apply. A. The institution's e-signature solution uses digital signature encryption. B. The institution's e-signature solution embeds the signature and audit trail directly in the e-signed document. C. E-signed documents are stored and retrieved easily in the institution's system of record of choice. D. The signature and document verification process is complex to prevent fraud.

A, B, and C

What is the purpose of E-Sign?

Allows the use of electronic records to satisfy any statute, regulation, or law requiring that such information be provided in writing, if the consumer has affirmatively consented and hasn't withdrawn consent.

Electronic Signature

An electronic sound, symbol, or process attached to or logically associated with a record and executed or adopted by a person with the intent to sign the record.

Consumer

An individual who obtains, through a transaction, products or services which are used primarily for personal, family, or household purposes, and also means the legal representative of such an individual.

Person

An individual, corporation, business trust, estate, trust, partnership, LLC, association, joint venture, governmental agency, public corporation or any other legal or commercial entity.

Electronic

Relating to technology having electrical, digital, magnetic, wireless, optical, electromagnetic, or similar capabilities

Hardware and Software Requirements

The bank must provide a statement of the hardware and software requirements before consenting to use electronic records. If there are changes in the hardware or software requirements, the bank must provide a statement of the revision and the right to withdraw consent without consequence or fee. Oral communications or a recording of an oral communication DOES NOT qualify as an electronic record.

Prior Consent and Availability of Paper Records

The bank must provide the consumer: A statement informing them of their right to receive the record in paper form and the right to withdraw consent; If the consent applies only to the particular transaction or to identified categories of records; Describe procedures for withdrawing consent; and How the consumer can request a paper copy of a record and any fee charged.