
From the U.S. Code Online via GPO Access
[wais.access.gpo.gov]
[Laws in effect as of January 2, 2001]
[Document not affected by Public Laws enacted between
  January 2, 2001 and January 28, 2002]
[CITE: 15USC7001]

 
                      TITLE 15--COMMERCE AND TRADE
 
    CHAPTER 96--ELECTRONIC SIGNATURES IN GLOBAL AND NATIONAL COMMERCE
 
       SUBCHAPTER I--ELECTRONIC RECORDS AND SIGNATURES IN COMMERCE
 
Sec. 7001. General rule of validity


(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        has not withdrawn such consent;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.

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

                       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.


                             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'.''

                  Section Referred to in Other Sections

    This section is referred to in sections 7002, 7003, 7004, 7005, 7031 
of this title.
