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What Loan Docs Require An Original Signature?

What loan documents require an original signature and when is an electronic signature or facsimile sufficient?

Answer by Dan Persfull: This is a state law issue. For IN you can refer to IC 26-2-8 Uniform Electronic Transactions Act.


Answer by Andy Zavoina: First, don't confuse signatures being required and the allowance of an electronic signature.

This isn't necessarily all inclusive as I haven't done any kind of review, but where signatures are "required" include:

  • Credit insurance on a TILA loan, signed or initialed.
  • Insurance disclosures
  • Flood notice (only when in a SFHA)

    Does the Note have to be signed - no federal law requires it. Now don't confuse the federal or state law with the law of common sense. There are many times you will get a signature when there is no regulations saying "get this signed." It is an accepted practice that identifies an obligation, acknowledgment, evidence of identity, etc. These are like policies - you'll have many more policies than are required, because it is the right thing to do. You'll have many more signatures, because it supports your relationship. For this reason, assembling a list of "signature required" documents can be a lot more work than it is worth.

    As to electronic signatures, the E-SIGN Act allows the substitution of bits and bytes in place of a "wet" signature whenever federal law requires one, with provisions, i.e. the hoops which include disclosures and demonstrable consent. States that have a conforming version of UETA have replaced E-SIGN as it pertains to the rules on state signature requirements. There are exceptions as to when electronic signatures are not acceptable but I don't believe they apply to common banking transactions. You can research that on BOL if interested.

    I can't speak to facsimile signatures.

    First published on 4/15/13
  • First published on 04/15/2013

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