Skip to content
BOL Conferences
Thread Options
#2209768 - 03/28/19 02:40 PM Financial docs that cannot be e-signed
KS_Banking_Atty Offline
New Poster
Joined: Dec 2014
Posts: 1
Can anyone point me to good resources specifically tailored for the banking industry on what documents cannot (or should not) be signed electronically? Obviously anything requiring notarization is out. I'm looking to develop a comprehensive list for my bank.

Return to Top
eBanking / Technology
#2209772 - 03/28/19 02:48 PM Re: Financial docs that cannot be e-signed KS_Banking_Atty
rlcarey Offline
10K Club
rlcarey
Joined: Jul 2001
Posts: 83,363
Galveston, TX
Electronic signatures are more of a State law issue.
_________________________
The opinions expressed here should not be construed to be those of my employer: PPDocs.com

Return to Top
#2209807 - 03/28/19 06:35 PM Re: Financial docs that cannot be e-signed KS_Banking_Atty
Richard Insley Offline
10K Club
Richard Insley
Joined: Oct 2000
Posts: 10,180
Toano, VA
This is an interesting question. If you find a resource like this, please let us know.

Digital signatures are relatively new and neither the state UETAs nor ESIGN specify what is or is not a valid digital signature. Most likely, you've already researched case law and found little or nothing on point. It's going to be up to each litigant to convince each court that a particular series of electronic events should carry the same weight at a wet signature. The customer can be expected to disavow the "signature" and urge the court to throw out the bank's claims.

Assuming you are unable to find the hoped-for resource, your bank will need to apply good old fashioned risk management techniques. Document by document, quantify how much you will lose if:
a. you accept an electronic signature instead of a wet one.
b. the customer defaults or is otherwise in breach of the terms of the electronic promises.
c. you go to court to obtain a judgement and the court rules against you.

Some of those failed signatures won't make much difference. Either it's unlikely you will need to go to court, or the amount at risk is small. Put these documents on the "OK" list. The others could cause significant harm to the bank and you should put these documents on the "too risky" list...at least for now. We can hope for case law on digital signatures, but no bank wants to be the poster child for a digital disaster.
_________________________
...gone fishing.

Return to Top

Moderator:  Andy_Z