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#690923 - 02/22/07 12:06 AM E-SIGN ACT
Simplee Compli Offline
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Joined: Nov 2006
Posts: 45
USA
We are going to offer our customer an online banking option to use to open their account and send the funds to open an account either by:

Check
Wire Transfer
ACH

If the customer opts to send their funds via ACH, they are prompted to a Terms and Conditions screen. They can either decline the T&Cs or accept them. If they accept they move on through the different steps to set-up the ACH. If they decline, they must choose another payment option.

Does this scenario fall under the E-Sign Act since we are giving our disclosures to our customers online?

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eBanking / Technology
#692801 - 02/23/07 10:50 PM Re: E-SIGN ACT Simplee Compli
Andy_Z Offline
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Andy_Z
Joined: Oct 2000
Posts: 27,748
On the Net
E-Sign applies to federal requirements and UETA applies to state issues. I am not a lawyer. But most contract issues are state regulated, meaning UETA applies. By agreeing they are entering into a contract. Then ask yourself if the disclosures you're making are federally required, or state required.

Bottom line, I'd say that yes, you have them agreeing. That doesn't mean you have to jump through many other hoops here as this is pretty simple. There are differing degrees of what you'll do with E-Sign. "Click here" to accept the T&C is one way. You wouldn't want that same method for a loan contract, however.
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#692844 - 02/24/07 12:52 AM Re: E-SIGN ACT Andy_Z
Richard Insley Online
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Richard Insley
Joined: Oct 2000
Posts: 10,179
Toano, VA
Originally Posted By: Andy Z
E-Sign applies to federal requirements and UETA applies to state issues.

ESIGN's even better than that. It's used to meet federal requirements, but can also be used as a substitute for a state UETA at the bank's option. This choice of law is particularly important for banks with a footprint that is larger than a single state.
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