What is the Electronic Signatures in Global and National Commerce Act?

The Electronic Signatures in Global and National Commerce Act (ESIGN) is a federal law passed in 2000 that governs the use of electronic signatures, records, and contracts. It was designed to make transactions faster and more efficient by eliminating the need for people to appear in-person or scan documents and send them through the mail. This act applies to all contracts that involve interstate or foreign commerce and is applicable in the state of South Carolina. Under ESIGN, electronic signatures and records are treated as equivalent to traditional paper documents. This means that, in most cases, an agreement executed with an electronic signature is considered just as valid as a paper agreement that has been handwritten and signed. This applies not only to contracts, but also to documents such as bank statements, loan documents, and more. This act also establishes rules and procedures for the enforcement of electronic signatures and contracts, as well as the acceptance and validation of electronic signatures. For example, if there is a dispute over the authenticity of an electronic signature, the burden of proof is on the individual challenging the signature. Overall, ESIGN was created to promote the use of electronic signatures, records, and contracts in the banking sector. It provides a legal framework for businesses to securely and efficiently send, receive, and store electronic documents. This law helps make banking laws in South Carolina more efficient and secure.

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What is the Electronic Signatures in Global and National Commerce Act?

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