US (United States) Code title 15. Chapter 96: Electronic signatures in global and national commerce

Codificación normativa de EEUU (Estados Unidos). Legislación federal estadounidense # Commerce and Trade

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-CITE-

15 USC CHAPTER 96 - ELECTRONIC SIGNATURES IN GLOBAL AND

NATIONAL COMMERCE 01/06/03

-EXPCITE-

TITLE 15 - COMMERCE AND TRADE

CHAPTER 96 - ELECTRONIC SIGNATURES IN GLOBAL AND NATIONAL COMMERCE

.

-HEAD-

CHAPTER 96 - ELECTRONIC SIGNATURES IN GLOBAL AND NATIONAL COMMERCE

-MISC1-

SUBCHAPTER I - ELECTRONIC RECORDS AND SIGNATURES IN COMMERCE

Sec.

7001. General rule of validity.

(a) In general.

(b) Preservation of rights and obligations.

(c) Consumer disclosures.

(d) Retention of contracts and records.

(e) Accuracy and ability to retain contracts and

other records.

(f) Proximity.

(g) Notarization and acknowledgment.

(h) Electronic agents.

(i) Insurance.

(j) Insurance agents and brokers.

7002. Exemption to preemption.

(a) In general.

(b) Exceptions for actions by States as market

participants.

(c) Prevention of circumvention.

7003. Specific exceptions.

(a) Excepted requirements.

(b) Additional exceptions.

(c) Review of exceptions.

7004. Applicability to Federal and State governments.

(a) Filing and access requirements.

(b) Preservation of existing rulemaking authority.

(c) Additional limitations.

(d) Authority to exempt from consent provision.

(e) Electronic letters of agency.

7005. Studies.

(a) Delivery.

(b) Study of electronic consent.

7006. Definitions.

SUBCHAPTER II - TRANSFERABLE RECORDS

7021. Transferable records.

(a) Definitions.

(b) Control.

(c) Conditions.

(d) Status as holder.

(e) Obligor rights.

(f) Proof of control.

(g) UCC references.

SUBCHAPTER III - PROMOTION OF INTERNATIONAL ELECTRONIC COMMERCE

7031. Principles governing the use of electronic signatures in

international transactions.

(a) Promotion of electronic signatures.

(b) Consultation.

(c) Definitions.

-CITE-

15 USC SUBCHAPTER I - ELECTRONIC RECORDS AND SIGNATURES

IN COMMERCE 01/06/03

-EXPCITE-

TITLE 15 - COMMERCE AND TRADE

CHAPTER 96 - ELECTRONIC SIGNATURES IN GLOBAL AND NATIONAL COMMERCE

SUBCHAPTER I - ELECTRONIC RECORDS AND SIGNATURES IN COMMERCE

.

-HEAD-

SUBCHAPTER I - ELECTRONIC RECORDS AND SIGNATURES IN COMMERCE

-CITE-

15 USC Sec. 7001 01/06/03

-EXPCITE-

TITLE 15 - COMMERCE AND TRADE

CHAPTER 96 - ELECTRONIC SIGNATURES IN GLOBAL AND NATIONAL COMMERCE

SUBCHAPTER I - ELECTRONIC RECORDS AND SIGNATURES IN COMMERCE

-HEAD-

Sec. 7001. General rule of validity

-STATUTE-

(a) In general

Notwithstanding any statute, regulation, or other rule of law

(other than this subchapter and subchapter II of this chapter),

with respect to any transaction in or affecting interstate or

foreign commerce -

(1) a signature, contract, or other record relating to such

transaction may not be denied legal effect, validity, or

enforceability solely because it is in electronic form; and

(2) a contract relating to such transaction may not be denied

legal effect, validity, or enforceability solely because an

electronic signature or electronic record was used in its

formation.

(b) Preservation of rights and obligations

This subchapter does not -

(1) limit, alter, or otherwise affect any requirement imposed

by a statute, regulation, or rule of law relating to the rights

and obligations of persons under such statute, regulation, or

rule of law other than a requirement that contracts or other

records be written, signed, or in nonelectronic form; or

(2) require any person to agree to use or accept electronic

records or electronic signatures, other than a governmental

agency with respect to a record other than a contract to which it

is a party.

(c) Consumer disclosures

(1) Consent to electronic records

Notwithstanding subsection (a) of this section, 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).

(2) Other rights

(A) Preservation of consumer protections

Nothing in this subchapter affects the content or timing of

any disclosure or other record required to be provided or made

available to any consumer under any statute, regulation, or

other rule of law.

(B) Verification or acknowledgment

If a law that was enacted prior to this chapter expressly

requires a record to be provided or made available by a

specified method that requires verification or acknowledgment

of receipt, the record may be provided or made available

electronically only if the method used provides verification or

acknowledgment of receipt (whichever is required).

(3) Effect of failure to obtain electronic consent or

confirmation of consent

The legal effectiveness, validity, or enforceability of any

contract executed by a consumer shall not be denied solely

because of the failure to obtain electronic consent or

confirmation of consent by that consumer in accordance with

paragraph (1)(C)(ii).

(4) Prospective effect

Withdrawal of consent by a consumer shall not affect the legal

effectiveness, validity, or enforceability of electronic records

provided or made available to that consumer in accordance with

paragraph (1) prior to implementation of the consumer's

withdrawal of consent. A consumer's withdrawal of consent shall

be effective within a reasonable period of time after receipt of

the withdrawal by the provider of the record. Failure to comply

with paragraph (1)(D) may, at the election of the consumer, be

treated as a withdrawal of consent for purposes of this

paragraph.

(5) Prior consent

This subsection does not apply to any records that are provided

or made available to a consumer who has consented prior to the

effective date of this subchapter to receive such records in

electronic form as permitted by any statute, regulation, or other

rule of law.

(6) Oral communications

An oral communication or a recording of an oral communication

shall not qualify as an electronic record for purposes of this

subsection except as otherwise provided under applicable law.

(d) Retention of contracts and records

(1) Accuracy and accessibility

If a statute, regulation, or other rule of law requires that a

contract or other record relating to a transaction in or

affecting interstate or foreign commerce be retained, that

requirement is met by retaining an electronic record of the

information in the contract or other record that -

(A) accurately reflects the information set forth in the

contract or other record; and

(B) remains accessible to all persons who are entitled to

access by statute, regulation, or rule of law, for the period

required by such statute, regulation, or rule of law, in a form

that is capable of being accurately reproduced for later

reference, whether by transmission, printing, or otherwise.

(2) Exception

A requirement to retain a contract or other record in

accordance with paragraph (1) does not apply to any information

whose sole purpose is to enable the contract or other record to

be sent, communicated, or received.

(3) Originals

If a statute, regulation, or other rule of law requires a

contract or other record relating to a transaction in or

affecting interstate or foreign commerce to be provided,

available, or retained in its original form, or provides

consequences if the contract or other record is not provided,

available, or retained in its original form, that statute,

regulation, or rule of law is satisfied by an electronic record

that complies with paragraph (1).

(4) Checks

If a statute, regulation, or other rule of law requires the

retention of a check, that requirement is satisfied by retention

of an electronic record of the information on the front and back

of the check in accordance with paragraph (1).

(e) Accuracy and ability to retain contracts and other records

Notwithstanding subsection (a) of this section, if a statute,

regulation, or other rule of law requires that a contract or other

record relating to a transaction in or affecting interstate or

foreign commerce be in writing, the legal effect, validity, or

enforceability of an electronic record of such contract or other

record may be denied if such electronic record is not in a form

that is capable of being retained and accurately reproduced for

later reference by all parties or persons who are entitled to

retain the contract or other record.

(f) Proximity

Nothing in this subchapter affects the proximity required by any

statute, regulation, or other rule of law with respect to any

warning, notice, disclosure, or other record required to be posted,

displayed, or publicly affixed.

(g) Notarization and acknowledgment

If a statute, regulation, or other rule of law requires a

signature or record relating to a transaction in or affecting

interstate or foreign commerce to be notarized, acknowledged,

verified, or made under oath, that requirement is satisfied if the

electronic signature of the person authorized to perform those

acts, together with all other information required to be included

by other applicable statute, regulation, or rule of law, is

attached to or logically associated with the signature or record.

(h) Electronic agents

A contract or other record relating to a transaction in or

affecting interstate or foreign commerce may not be denied legal

effect, validity, or enforceability solely because its formation,

creation, or delivery involved the action of one or more electronic

agents so long as the action of any such electronic agent is

legally attributable to the person to be bound.

(i) Insurance

It is the specific intent of the Congress that this subchapter

and subchapter II of this chapter apply to the business of

insurance.

(j) Insurance agents and brokers

An insurance agent or broker acting under the direction of a

party that enters into a contract by means of an electronic record

or electronic signature may not be held liable for any deficiency

in the electronic procedures agreed to by the parties under that

contract if -

(1) the agent or broker has not engaged in negligent, reckless,

or intentional tortious conduct;

(2) the agent or broker was not involved in the development or

establishment of such electronic procedures; and

(3) the agent or broker did not deviate from such procedures.

-SOURCE-

(Pub. L. 106-229, title I, Sec. 101, June 30, 2000, 114 Stat. 464.)

-REFTEXT-

REFERENCES IN TEXT

This chapter, referred to in subsec. (c)(2)(B), was in the

original ''this Act'', meaning Pub. L. 106-229, June 30, 2000, 114

Stat. 464, which is classified principally to this chapter. For

complete classification of this Act to the Code, see Short Title

note below and Tables.

For the effective date of this subchapter, referred to in subsec.

(c)(5), see Effective Date note below.

-MISC2-

EFFECTIVE DATE

Pub. L. 106-229, title I, Sec. 107, June 30, 2000, 114 Stat. 473,

provided that:

''(a) In General. - Except as provided in subsection (b), this

title (enacting this subchapter) shall be effective on October 1,

2000.

''(b) Exceptions. -

''(1) Record retention. -

''(A) In general. - Subject to subparagraph (B), this title

(enacting this subchapter) shall be effective on March 1, 2001,

with respect to a requirement that a record be retained imposed

by -

''(i) a Federal statute, regulation, or other rule of law,

or

''(ii) a State statute, regulation, or other rule of law

administered or promulgated by a State regulatory agency.

''(B) Delayed effect for pending rulemakings. - If on March

1, 2001, a Federal regulatory agency or State regulatory agency

has announced, proposed, or initiated, but not completed, a

rulemaking proceeding to prescribe a regulation under section

104(b)(3) (15 U.S.C. 7004(b)(3)) with respect to a requirement

described in subparagraph (A), this title shall be effective on

June 1, 2001, with respect to such requirement.

''(2) Certain guaranteed and insured loans. - With regard to

any transaction involving a loan guarantee or loan guarantee

commitment (as those terms are defined in section 502 of the

Federal Credit Reform Act of 1990 (2 U.S.C. 661a)), or involving

a program listed in the Federal Credit Supplement, Budget of the

United States, FY 2001, this title applies only to such

transactions entered into, and to any loan or mortgage made,

insured, or guaranteed by the United States Government

thereunder, on and after one year after the date of enactment of

this Act (June 30, 2000).

''(3) Student loans. - With respect to any records that are

provided or made available to a consumer pursuant to an

application for a loan, or a loan made, pursuant to title IV of

the Higher Education Act of 1965 (20 U.S.C. 1070 et seq., 42

U.S.C. 2751 et seq.), section 101(c) of this Act (15 U.S.C.

7001(c)) shall not apply until the earlier of -

''(A) such time as the Secretary of Education publishes

revised promissory notes under section 432(m) of the Higher

Education Act of 1965 (20 U.S.C. 1082(m)); or

''(B) one year after the date of enactment of this Act (June

30, 2000).''

SHORT TITLE

Pub. L. 106-229, Sec. 1, June 30, 2000, 114 Stat. 464, provided

that: ''This Act (enacting this chapter and amending provisions set

out as a note under section 231 of Title 47, Telegraphs,

Telephones, and Radiotelegraphs) may be cited as the 'Electronic

Signatures in Global and National Commerce Act'.''

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in sections 7002, 7003, 7004, 7005,

7031 of this title.

-CITE-

15 USC Sec. 7002 01/06/03

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TITLE 15 - COMMERCE AND TRADE

CHAPTER 96 - ELECTRONIC SIGNATURES IN GLOBAL AND NATIONAL COMMERCE

SUBCHAPTER I - ELECTRONIC RECORDS AND SIGNATURES IN COMMERCE

-HEAD-

Sec. 7002. Exemption to preemption

-STATUTE-

(a) In general

A State statute, regulation, or other rule of law may modify,

limit, or supersede the provisions of section 7001 of this title

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 as approved and recommended for

enactment in all the States by the National Conference of

Commissioners on Uniform State Laws in 1999, except that any

exception to the scope of such Act enacted by a State under

section 3(b)(4) of such Act shall be preempted to the extent such

exception is inconsistent with this subchapter or subchapter II

of this chapter, or would not be permitted under paragraph

(2)(A)(ii) of this subsection; or

(2)(A) specifies the alternative procedures or requirements for

the use or acceptance (or both) of electronic records or

electronic signatures to establish the legal effect, validity, or

enforceability of contracts or other records, if -

(i) such alternative procedures or requirements are

consistent with this subchapter and subchapter II of this

chapter; and

(ii) such alternative procedures or requirements do not

require, or accord greater legal status or effect to, the

implementation or application of a specific technology or

technical specification for performing the functions of

creating, storing, generating, receiving, communicating, or

authenticating electronic records or electronic signatures; and

(B) if enacted or adopted after June 30, 2000, makes specific

reference to this chapter.

(b) Exceptions for actions by States as market participants

Subsection (a)(2)(A)(ii) of this section shall not apply to the

statutes, regulations, or other rules of law governing procurement

by any State, or any agency or instrumentality thereof.

(c) Prevention of circumvention

Subsection (a) of this section does not permit a State to

circumvent this subchapter or subchapter II of this chapter through

the imposition of nonelectronic delivery methods under section

8(b)(2) of the Uniform Electronic Transactions Act.

-SOURCE-

(Pub. L. 106-229, title I, Sec. 102, June 30, 2000, 114 Stat. 467.)

-CITE-

15 USC Sec. 7003 01/06/03

-EXPCITE-

TITLE 15 - COMMERCE AND TRADE

CHAPTER 96 - ELECTRONIC SIGNATURES IN GLOBAL AND NATIONAL COMMERCE

SUBCHAPTER I - ELECTRONIC RECORDS AND SIGNATURES IN COMMERCE

-HEAD-

Sec. 7003. Specific exceptions

-STATUTE-

(a) Excepted requirements

The provisions of section 7001 of this title shall not apply to a

contract or other record to the extent it is governed by -

(1) a statute, regulation, or other rule of law governing the

creation and execution of wills, codicils, or testamentary

trusts;

(2) a State statute, regulation, or other rule of law governing

adoption, divorce, or other matters of family law; or

(3) the Uniform Commercial Code, as in effect in any State,

other than sections 1-107 and 1-206 and Articles 2 and 2A.

(b) Additional exceptions

The provisions of section 7001 of this title shall not apply to -

(1) court orders or notices, or official court documents

(including briefs, pleadings, and other writings) required to be

executed in connection with court proceedings;

(2) any notice of -

(A) the cancellation or termination of utility services

(including water, heat, and power);

(B) default, acceleration, repossession, foreclosure, or

eviction, or the right to cure, under a credit agreement

secured by, or a rental agreement for, a primary residence of

an individual;

(C) the cancellation or termination of health insurance or

benefits or life insurance benefits (excluding annuities); or

(D) recall of a product, or material failure of a product,

that risks endangering health or safety; or

(3) any document required to accompany any transportation or

handling of hazardous materials, pesticides, or other toxic or

dangerous materials.

(c) Review of exceptions

(1) Evaluation required

The Secretary of Commerce, acting through the Assistant

Secretary for Communications and Information, shall review the

operation of the exceptions in subsections (a) and (b) of this

section to evaluate, over a period of 3 years, whether such

exceptions continue to be necessary for the protection of

consumers. Within 3 years after June 30, 2000, the Assistant

Secretary shall submit a report to the Congress on the results of

such evaluation.

(2) Determinations

If a Federal regulatory agency, with respect to matter within

its jurisdiction, determines after notice and an opportunity for

public comment, and publishes a finding, that one or more such

exceptions are no longer necessary for the protection of

consumers and eliminating such exceptions will not increase the

material risk of harm to consumers, such agency may extend the

application of section 7001 of this title to the exceptions

identified in such finding.

-SOURCE-

(Pub. L. 106-229, title I, Sec. 103, June 30, 2000, 114 Stat. 468.)

-CITE-

15 USC Sec. 7004 01/06/03

-EXPCITE-

TITLE 15 - COMMERCE AND TRADE

CHAPTER 96 - ELECTRONIC SIGNATURES IN GLOBAL AND NATIONAL COMMERCE

SUBCHAPTER I - ELECTRONIC RECORDS AND SIGNATURES IN COMMERCE

-HEAD-

Sec. 7004. Applicability to Federal and State governments

-STATUTE-

(a) Filing and access requirements

Subject to subsection (c)(2) of this section, nothing in this

subchapter limits or supersedes any requirement by a Federal

regulatory agency, self-regulatory organization, or State

regulatory agency that records be filed with such agency or

organization in accordance with specified standards or formats.

(b) Preservation of existing rulemaking authority

(1) Use of authority to interpret

Subject to paragraph (2) and subsection (c) of this section, a

Federal regulatory agency or State regulatory agency that is

responsible for rulemaking under any other statute may interpret

section 7001 of this title with respect to such statute through -

(A) the issuance of regulations pursuant to a statute; or

(B) to the extent such agency is authorized by statute to

issue orders or guidance, the issuance of orders or guidance of

general applicability that are publicly available and published

(in the Federal Register in the case of an order or guidance

issued by a Federal regulatory agency).

This paragraph does not grant any Federal regulatory agency or

State regulatory agency authority to issue regulations, orders,

or guidance pursuant to any statute that does not authorize such

issuance.

(2) Limitations on interpretation authority

Notwithstanding paragraph (1), a Federal regulatory agency

shall not adopt any regulation, order, or guidance described in

paragraph (1), and a State regulatory agency is preempted by

section 7001 of this title from adopting any regulation, order,

or guidance described in paragraph (1), unless -

(A) such regulation, order, or guidance is consistent with

section 7001 of this title;

(B) such regulation, order, or guidance does not add to the

requirements of such section; and

(C) such agency finds, in connection with the issuance of

such regulation, order, or guidance, that -

(i) there is a substantial justification for the

regulation, order, or guidance;

(ii) the methods selected to carry out that purpose -

(I) are substantially equivalent to the requirements

imposed on records that are not electronic records; and

(II) will not impose unreasonable costs on the acceptance

and use of electronic records; and

(iii) the methods selected to carry out that purpose do not

require, or accord greater legal status or effect to, the

implementation or application of a specific technology or

technical specification for performing the functions of

creating, storing, generating, receiving, communicating, or

authenticating electronic records or electronic signatures.

(3) Performance standards

(A) Accuracy, record integrity, accessibility

Notwithstanding paragraph (2)(C)(iii), a Federal regulatory

agency or State regulatory agency may interpret section 7001(d)

of this title to specify performance standards to assure

accuracy, record integrity, and accessibility of records that

are required to be retained. Such performance standards may be

specified in a manner that imposes a requirement in violation

of paragraph (2)(C)(iii) if the requirement (i) serves an

important governmental objective; and (ii) is substantially

related to the achievement of that objective. Nothing in this

paragraph shall be construed to grant any Federal regulatory

agency or State regulatory agency authority to require use of a

particular type of software or hardware in order to comply with

section 7001(d) of this title.

(B) Paper or printed form

Notwithstanding subsection (c)(1) of this section, a Federal

regulatory agency or State regulatory agency may interpret

section 7001(d) of this title to require retention of a record

in a tangible printed or paper form if -

(i) there is a compelling governmental interest relating to

law enforcement or national security for imposing such

requirement; and

(ii) imposing such requirement is essential to attaining

such interest.

(4) Exceptions for actions by government as market participant

Paragraph (2)(C)(iii) shall not apply to the statutes,

regulations, or other rules of law governing procurement by the

Federal or any State government, or any agency or instrumentality

thereof.

(c) Additional limitations

(1) Reimposing paper prohibited

Nothing in subsection (b) of this section (other than paragraph

(3)(B) thereof) shall be construed to grant any Federal

regulatory agency or State regulatory agency authority to impose

or reimpose any requirement that a record be in a tangible

printed or paper form.

(2) Continuing obligation under Government Paperwork Elimination

Act

Nothing in subsection (a) or (b) of this section relieves any

Federal regulatory agency of its obligations under the Government

Paperwork Elimination Act (title XVII of Public Law 105-277).

(d) Authority to exempt from consent provision

(1) In general

A Federal regulatory agency may, with respect to matter within

its jurisdiction, by regulation or order issued after notice and

an opportunity for public comment, exempt without condition a

specified category or type of record from the requirements

relating to consent in section 7001(c) of this title if such

exemption is necessary to eliminate a substantial burden on

electronic commerce and will not increase the material risk of

harm to consumers.

(2) Prospectuses

Within 30 days after June 30, 2000, the Securities and Exchange

Commission shall issue a regulation or order pursuant to

paragraph (1) exempting from section 7001(c) of this title any

records that are required to be provided in order to allow

advertising, sales literature, or other information concerning a

security issued by an investment company that is registered under

the Investment Company Act of 1940 (15 U.S.C. 80a-1 et seq.), or

concerning the issuer thereof, to be excluded from the definition

of a prospectus under section 77b(a)(10)(A) of this title.

(e) Electronic letters of agency

The Federal Communications Commission shall not hold any contract

for telecommunications service or letter of agency for a preferred

carrier change, that otherwise complies with the Commission's

rules, to be legally ineffective, invalid, or unenforceable solely

because an electronic record or electronic signature was used in

its formation or authorization.

-SOURCE-

(Pub. L. 106-229, title I, Sec. 104, June 30, 2000, 114 Stat. 469.)

-REFTEXT-

REFERENCES IN TEXT

The Government Paperwork Elimination Act, referred to in subsec.

(c)(2), is title XVII of Pub. L. 105-277, div. C, Oct. 21, 1998,

112 Stat. 2681-749, which amended section 3504 of Title 44, Public

Printing and Documents, and enacted provisions set out as a note

under section 3504 of Title 44. For complete classification of this

Act to the Code, see Tables.

The Investment Company Act of 1940, referred to in subsec.

(d)(2), is title I of act Aug. 22, 1940, ch. 686, 54 Stat. 789, as

amended, which is classified generally to subchapter I (Sec. 80a-1

et seq.) of chapter 2D of this title. For complete classification

of this Act to the Code, see section 80a-51 of this title and

Tables.

-CITE-

15 USC Sec. 7005 01/06/03

-EXPCITE-

TITLE 15 - COMMERCE AND TRADE

CHAPTER 96 - ELECTRONIC SIGNATURES IN GLOBAL AND NATIONAL COMMERCE

SUBCHAPTER I - ELECTRONIC RECORDS AND SIGNATURES IN COMMERCE

-HEAD-

Sec. 7005. Studies

-STATUTE-

(a) Delivery

Within 12 months after June 30, 2000, the Secretary of Commerce

shall conduct an inquiry regarding the effectiveness of the

delivery of electronic records to consumers using electronic mail

as compared with delivery of written records via the United States

Postal Service and private express mail services. The Secretary

shall submit a report to the Congress regarding the results of such

inquiry by the conclusion of such 12-month period.

(b) Study of electronic consent

Within 12 months after June 30, 2000, the Secretary of Commerce

and the Federal Trade Commission shall submit a report to the

Congress evaluating any benefits provided to consumers by the

procedure required by section 7001(c)(1)(C)(ii) of this title; any

burdens imposed on electronic commerce by that provision; whether

the benefits outweigh the burdens; whether the absence of the

procedure required by section 7001(c)(1)(C)(ii) of this title would

increase the incidence of fraud directed against consumers; and

suggesting any revisions to the provision deemed appropriate by the

Secretary and the Commission. In conducting this evaluation, the

Secretary and the Commission shall solicit comment from the general

public, consumer representatives, and electronic commerce

businesses.

-SOURCE-

(Pub. L. 106-229, title I, Sec. 105, June 30, 2000, 114 Stat. 471.)

-CITE-

15 USC Sec. 7006 01/06/03

-EXPCITE-

TITLE 15 - COMMERCE AND TRADE

CHAPTER 96 - ELECTRONIC SIGNATURES IN GLOBAL AND NATIONAL COMMERCE

SUBCHAPTER I - ELECTRONIC RECORDS AND SIGNATURES IN COMMERCE

-HEAD-

Sec. 7006. Definitions

-STATUTE-

For purposes of this subchapter:

(1) Consumer

The term ''consumer'' means 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.

(2) Electronic

The term ''electronic'' means relating to technology having

electrical, digital, magnetic, wireless, optical,

electromagnetic, or similar capabilities.

(3) Electronic agent

The term ''electronic agent'' means 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 of the action or response.

(4) Electronic record

The term ''electronic record'' means a contract or other record

created, generated, sent, communicated, received, or stored by

electronic means.

(5) Electronic signature

The term ''electronic signature'' means an electronic sound,

symbol, or process, attached to or logically associated with a

contract or other record and executed or adopted by a person with

the intent to sign the record.

(6) Federal regulatory agency

The term ''Federal regulatory agency'' means an agency, as that

term is defined in section 552(f) of title 5.

(7) Information

The term ''information'' means data, text, images, sounds,

codes, computer programs, software, databases, or the like.

(8) Person

The term ''person'' means an individual, corporation, business

trust, estate, trust, partnership, limited liability company,

association, joint venture, governmental agency, public

corporation, or any other legal or commercial entity.

(9) Record

The term ''record'' means information that is inscribed on a

tangible medium or that is stored in an electronic or other

medium and is retrievable in perceivable form.

(10) Requirement

The term ''requirement'' includes a prohibition.

(11) Self-regulatory organization

The term ''self-regulatory organization'' means an organization

or entity that is not a Federal regulatory agency or a State, but

that is under the supervision of a Federal regulatory agency and

is authorized under Federal law to adopt and administer rules

applicable to its members that are enforced by such organization

or entity, by a Federal regulatory agency, or by another

self-regulatory organization.

(12) State

The term ''State'' includes the District of Columbia and the

territories and possessions of the United States.

(13) Transaction

The term ''transaction'' means 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 -

(A) the sale, lease, exchange, licensing, or other

disposition of (i) personal property, including goods and

intangibles, (ii) services, and (iii) any combination thereof;

and

(B) the sale, lease, exchange, or other disposition of any

interest in real property, or any combination thereof.

-SOURCE-

(Pub. L. 106-229, title I, Sec. 106, June 30, 2000, 114 Stat. 472.)

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in sections 7021, 7031 of this title;

title 18 section 2725.

-CITE-

15 USC SUBCHAPTER II - TRANSFERABLE RECORDS 01/06/03

-EXPCITE-

TITLE 15 - COMMERCE AND TRADE

CHAPTER 96 - ELECTRONIC SIGNATURES IN GLOBAL AND NATIONAL COMMERCE

SUBCHAPTER II - TRANSFERABLE RECORDS

.

-HEAD-

SUBCHAPTER II - TRANSFERABLE RECORDS

-SECREF-

SUBCHAPTER REFERRED TO IN OTHER SECTIONS

This subchapter is referred to in sections 7001, 7002 of this

title.

-CITE-

15 USC Sec. 7021 01/06/03

-EXPCITE-

TITLE 15 - COMMERCE AND TRADE

CHAPTER 96 - ELECTRONIC SIGNATURES IN GLOBAL AND NATIONAL COMMERCE

SUBCHAPTER II - TRANSFERABLE RECORDS

-HEAD-

Sec. 7021. Transferable records

-STATUTE-

(a) Definitions

For purposes of this section:

(1) Transferable record

The term ''transferable record'' means an electronic record

that -

(A) would be a note under Article 3 of the Uniform Commercial

Code if the electronic record were in writing;

(B) the issuer of the electronic record expressly has agreed

is a transferable record; and

(C) relates to a loan secured by real property.

A transferable record may be executed using an electronic

signature.

(2) Other definitions

The terms ''electronic record'', ''electronic signature'', and

''person'' have the same meanings provided in section 7006 of

this title.

(b) Control

A person has control of a transferable record if a system

employed for evidencing the transfer of interests in the

transferable record reliably establishes that person as the person

to which the transferable record was issued or transferred.

(c) Conditions

A system satisfies subsection (b) of this section, and a person

is deemed to have control of a transferable record, if the

transferable record is created, stored, and assigned in such a

manner that -

(1) a single authoritative copy of the transferable record

exists which is unique, identifiable, and, except as otherwise

provided in paragraphs (4), (5), and (6), unalterable;

(2) the authoritative copy identifies the person asserting

control as -

(A) the person to which the transferable record was issued;

or

(B) if the authoritative copy indicates that the transferable

record has been transferred, the person to which the

transferable record was most recently transferred;

(3) the authoritative copy is communicated to and maintained by

the person asserting control or its designated custodian;

(4) copies or revisions that add or change an identified

assignee of the authoritative copy can be made only with the

consent of the person asserting control;

(5) each copy of the authoritative copy and any copy of a copy

is readily identifiable as a copy that is not the authoritative

copy; and

(6) any revision of the authoritative copy is readily

identifiable as authorized or unauthorized.

(d) Status as holder

Except as otherwise agreed, a person having control of a

transferable record is the holder, as defined in section 1-201(20)

of the Uniform Commercial Code, of the transferable record and has

the same rights and defenses as a holder of an equivalent record or

writing under the Uniform Commercial Code, including, if the

applicable statutory requirements under section 3-302(a), 9-308, or

revised section 9-330 of the Uniform Commercial Code are satisfied,

the rights and defenses of a holder in due course or a purchaser,

respectively. Delivery, possession, and endorsement are not

required to obtain or exercise any of the rights under this

subsection.

(e) Obligor rights

Except as otherwise agreed, an obligor under a transferable

record has the same rights and defenses as an equivalent obligor

under equivalent records or writings under the Uniform Commercial

Code.

(f) Proof of control

If requested by a person against which enforcement is sought, the

person seeking to enforce the transferable record shall provide

reasonable proof that the person is in control of the transferable

record. Proof may include access to the authoritative copy of the

transferable record and related business records sufficient to

review the terms of the transferable record and to establish the

identity of the person having control of the transferable record.

(g) UCC references

For purposes of this subsection, all references to the Uniform

Commercial Code are to the Uniform Commercial Code as in effect in

the jurisdiction the law of which governs the transferable record.

-SOURCE-

(Pub. L. 106-229, title II, Sec. 201, June 30, 2000, 114 Stat.

473.)

-MISC1-

EFFECTIVE DATE

Pub. L. 106-229, title II, Sec. 202, June 30, 2000, 114 Stat.

475, provided that: ''This title (enacting this subchapter) shall

be effective 90 days after the date of enactment of this Act (June

30, 2000).''

-CITE-

15 USC SUBCHAPTER III - PROMOTION OF INTERNATIONAL

ELECTRONIC COMMERCE 01/06/03

-EXPCITE-

TITLE 15 - COMMERCE AND TRADE

CHAPTER 96 - ELECTRONIC SIGNATURES IN GLOBAL AND NATIONAL COMMERCE

SUBCHAPTER III - PROMOTION OF INTERNATIONAL ELECTRONIC COMMERCE

.

-HEAD-

SUBCHAPTER III - PROMOTION OF INTERNATIONAL ELECTRONIC COMMERCE

-CITE-

15 USC Sec. 7031 01/06/03

-EXPCITE-

TITLE 15 - COMMERCE AND TRADE

CHAPTER 96 - ELECTRONIC SIGNATURES IN GLOBAL AND NATIONAL COMMERCE

SUBCHAPTER III - PROMOTION OF INTERNATIONAL ELECTRONIC COMMERCE

-HEAD-

Sec. 7031. Principles governing the use of electronic signatures in

international transactions

-STATUTE-

(a) Promotion of electronic signatures

(1) Required actions

The Secretary of Commerce shall promote the acceptance and use,

on an international basis, of electronic signatures in accordance

with the principles specified in paragraph (2) and in a manner

consistent with section 7001 of this title. The Secretary of

Commerce shall take all actions necessary in a manner consistent

with such principles to eliminate or reduce, to the maximum

extent possible, the impediments to commerce in electronic

signatures, for the purpose of facilitating the development of

interstate and foreign commerce.

(2) Principles

The principles specified in this paragraph are the following:

(A) Remove paper-based obstacles to electronic transactions

by adopting relevant principles from the Model Law on

Electronic Commerce adopted in 1996 by the United Nations

Commission on International Trade Law.

(B) Permit parties to a transaction to determine the

appropriate authentication technologies and implementation

models for their transactions, with assurance that those

technologies and implementation models will be recognized and

enforced.

(C) Permit parties to a transaction to have the opportunity

to prove in court or other proceedings that their

authentication approaches and their transactions are valid.

(D) Take a nondiscriminatory approach to electronic

signatures and authentication methods from other jurisdictions.

(b) Consultation

In conducting the activities required by this section, the

Secretary shall consult with users and providers of electronic

signature products and services and other interested persons.

(c) Definitions

As used in this section, the terms ''electronic record'' and

''electronic signature'' have the same meanings provided in section

7006 of this title.

-SOURCE-

(Pub. L. 106-229, title III, Sec. 301, June 30, 2000, 114 Stat.

475.)

-CITE-