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#43569 - 11/18/02 03:21 PM Interim Final Rules for Electronic Communication
Gotwood Offline
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Posts: 715
When in doubt, ask the pros. I'm reading where the Federal Reserve System lifted the mandatory compliance date for the interim rules establishing uniform standards for using electronic communition to deliver disclosures under B,E, M, Z, and DD. The release was dated 8/2/01.

Is this still in effect? If so, what are we to be doing in the interim? If a bank wants to deliver disclosures electronically in accordance with the E-Sign Act, what rules do you follow in B, Z?

Any and all advice appreciated.

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eBanking / Technology
#43570 - 11/18/02 04:12 PM Re: Interim Final Rules for Electronic Communication
Andy_Z Offline
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The interim rules exist, but are not mandatory so you don't have to follow them. Doing so is safe, but may be more (or less) than final rules once they are published. I would be hesitant to make expensive system changes to follow the interim rules, especially the more controversial ones.

You may look at them and do what you can. You won't be cited for not doing it all.

E-Sign is law. That must be followed unless your state adopted a conforming version of UETA. UETA has some over-rides of E-Sign, specifically allowed for in E-Sign. Most notably the demonstrable consent and other requirements under 101. That said, I wouldn't over do it just because UETA gives you some latitude. That could be problematic in the long run.
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AndyZ CRCM
My opinions are not necessarily my employers.
R+R-R=R+R
Rules and Regs minus Relationships equals Resentment and Rebellion. John Maxwell

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#43571 - 11/18/02 10:39 PM Re: Interim Final Rules for Electronic Communicati
Richard Insley Offline
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Toano, VA
When the Fed bowed to industry complaints that e-Regs1 were unworkable, it promised to reconsider these amendments and provide "additional flexibility." Well over a year later, we are still awaiting that "additional flexibility" in the form of e-Regs2.

In the meantime, as Andy observes, the e-Regs are optional--at least in theory. As a practical matter, you must still comply with ESIGN and you must still provide disclosures that are "written" or "in a form the consumer may keep." The e-Regs offered a series of steps that guaranteed you could convince your next examiner that your e-delivered disclosures were "written". How else do you plan to convince the examiner that you have met this standard?
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#43572 - 12/05/02 06:41 PM Re: Interim Final Rules for Electronic Communication
Tina A Sweet Offline
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Tina A Sweet
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Posts: 1,033
Marysville, Ca.
Andy,

Can you get me a link to the E-sign Act? I cant seem to find it in my resources.

Thanks
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Tina A Sweet-Williams
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mailto:tsweet@goldcountrynb.com

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#43573 - 12/05/02 08:25 PM Re: Interim Final Rules for Electronic Communication
BANNED BY BOL MANAGEMENT Offline
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Here is a good article on the E-Sign Act.

HERE is a copy of the act

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#43574 - 12/05/02 08:34 PM Re: Interim Final Rules for Electronic Communication
Tina A Sweet Offline
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Tina A Sweet
Joined: Aug 2001
Posts: 1,033
Marysville, Ca.
Thanks Grist. How do you use the here and make it link to the site you want? As you can see I am not a tech guru.


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Tina A Sweet-Williams
AVP Special Assets
mailto:tsweet@goldcountrynb.com

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#43575 - 12/05/02 08:44 PM Re: Interim Final Rules for Electronic Communication
Andy_Z Offline
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_________________________
AndyZ CRCM
My opinions are not necessarily my employers.
R+R-R=R+R
Rules and Regs minus Relationships equals Resentment and Rebellion. John Maxwell

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#43576 - 12/05/02 09:56 PM Re: Interim Final Rules for Electronic Communication
Tina A Sweet Offline
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Tina A Sweet
Joined: Aug 2001
Posts: 1,033
Marysville, Ca.
Thank you oh King of Threads.
_________________________
Tina A Sweet-Williams
AVP Special Assets
mailto:tsweet@goldcountrynb.com

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#43577 - 12/05/02 09:57 PM Re: Interim Final Rules for Electronic Communication
BANNED BY BOL MANAGEMENT Offline
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BANNED BY BOL MANAGEMENT
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Posts: 524
It's easy: First, go to the web page that you have in mind to post, copy the web page URL, click on the BOL reply page Instant UBB Code "URL" and a new window will show up asking you to input/post the web page URL - Paste the URL that you copied to your clipboard, but be sure that http:// does not show twice, in other words paste the target URL over the http:// that is shown in the window.

Click O.K. and a new window comes up asking for a target word or anything else you want to input as the link - I use HERE. Click O.K. and BOL magically posts the URL and link word(s) in your reply post - add whatever you want and all that BOL citizens will see is HERE and your grist for the mill of awakening.

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#43578 - 12/06/02 04:38 PM Re: Interim Final Rules for Electronic Communicati
Richard Insley Offline
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Toano, VA
The only part of ESIGN you need to understand and implement is Section 101(c)(1):

(c) CONSUMER DISCLOSURES.—-(1) CONSENT TO ELECTRONIC RECORDS.—Notwithstanding subsection (a), if a statute, regulation, or other rule of law requires that information relating to a transaction or transactions in or affecting interstate or foreign commerce be provided or made available to a consumer in writing, the use of an electronic record to provide or make available (whichever is required) such information satisfies the requirement that such information be in writing if—
(A) the consumer has affirmatively consented to such use and has not withdrawn such consent;
(B) the consumer, prior to consenting, is provided with a clear and conspicuous statement—
_(i) informing the consumer of
___(I) any right or option of the consumer to have the record provided or made available on paper or in nonelectronic form, and
___(II) the right of the consumer to withdraw the consent to have the record provided or made available in an electronic form and of any conditions, consequences (which may include termination of the parties’ relationship), or fees in the event of such withdrawal;
_(ii) informing the consumer of whether the consent applies
___(I) only to the particular transaction which gave rise to the obligation to provide the record, or
___(II) to identified categories of records that may be provided or made available during the course of the parties’ relationship;
_(iii) describing the procedures the consumer must use to withdraw consent as provided in clause (i) and to update information needed to contact the consumer electronically; and
_(iv) informing the consumer
___(I) how, after the consent, the consumer may, upon request, obtain a paper copy of an electronic record, and
___(II) whether any fee will be charged for such copy;
(C) the consumer—
_(i) prior to consenting, is provided with a statement of the hardware and software requirements for access to and retention of the electronic records; and
_(ii) consents electronically, or confirms his or her consent electronically, in a manner that reasonably demonstrates that the consumer can access information in the electronic form that will be used to provide the information that is the subject of the consent; and
(D) after the consent of a consumer in accordance with subparagraph (A), if a change in the hardware or software requirements needed to access or retain electronic records creates a material risk that the consumer will not be able to access or retain a subsequent electronic record that was the subject of the consent, the person providing the electronic record—
_(i) provides the consumer with a statement of
___(I) the revised hardware and software requirements for access to and retention of the electronic records, and
___(II) the right to withdraw consent without the imposition of any fees for such withdrawal and without the imposition of any condition or consequence that was not disclosed under subparagraph (B)(i); and
_(ii) again complies with subparagraph (C).
_________________________
...gone fishing.

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#43579 - 12/06/02 05:07 PM Re: Interim Final Rules for Electronic Communicati
Andy_Z Offline
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As a national standard that may be so. But a very important section is also Sec. 102. Exemption to Preemption.
(a) IN GENERAL.—A State statute, regulation, or other rule of law may modify, limit, or supersede the provisions of section 101 with respect to State law only if such statute, regulation, or rule of law
–(1) constitutes an enactment or adoption of the Uniform Electronic Transactions Act...

E-Sign relief may be available. I urge people not to abuse what UETA allows, but you must be aware of your options.

Here is a list of states which have adopted UETA. I don't know that these 41 are conforming versions which would preempt E-Sign. That needs to be reviewed.
_________________________
AndyZ CRCM
My opinions are not necessarily my employers.
R+R-R=R+R
Rules and Regs minus Relationships equals Resentment and Rebellion. John Maxwell

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#43580 - 12/06/02 06:19 PM Re: Interim Final Rules for Electronic Communicati
Richard Insley Offline
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Posts: 10,056
Toano, VA
Until test cases burn some bright lines into the potentially overlapping authorities, the only sure-fire approach is to comply with ESIGN's disclosure and opt-in system. In a multi-state company, you may ignore UETA and choose ESIGN because it standardizes and simplifies your task. I've seen one opinion by a consumer advocate that ESIGN is the ONLY system that will hold up in court. I don't know who could or should use UETA for what types of e-writings, but who wants to be the test case when there's a safe harbor?
_________________________
...gone fishing.

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