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Key requirements of state and federal laws governing electronic records and signatures were detailed for NAFCU webcast attendees Wednesday by BuckleySandler LLP Partner Margo Tank and Counsel David Whitaker.

Tank and Whitaker focused on the Electronic Signatures in Global and National Commerce (ESIGN) Act of 2000 and the Uniform Electronic Transactions Act (UETA), which has been adopted by 47 states and Washington, D.C. Both laws ensure the legal legitimacy of electronic contracts or signatures.

In discussing the laws' requirements, Tank noted, "It's procedural – it's not substantive, but you need to play by the rules because if you don't play by the rules, you won't get this backstop at the state and federal level."

Whitaker reviewed the Arkansas Supreme Court case, Barwick v. Geico, that established the legitimacy of electronic signatures versus written signatures in the case of UETA.

Tank also discussed how "intent is key" with regard to electronic symbols and processes. She suggested that institutions keep screenshots of their electronic process as it would be seen by consumers; this can help show (if legally contested) that consumers are being given clear explanations and options when asked to provide an electronic signature. She also noted that institutions must include disclosures such as the consumer's right to a paper copy of a document.

The webcast will be available for one year through NAFCU's Online Training Center.