What is ESIGN?
ESIGN stands for Electronic Signatures In Global and National Commerce Act and is public law 106-229 enacted in late 2000. The purpose of the legislation was to provide a legal foundation for today’s electronic delivery of documents. These signatures are legally enforceable. Under the act, Electronic disclosures must be clear and conspicuous. In accordance with the ESIGN Act, affirmative customer consent must be obtained as follows: The lender must disclose the requirements for accessing and retaining electronic disclosures. The consumer must have the ability to electronically access the information. The consumer must affirmatively consent to electronic delivery. The lender must provide the disclosures in accordance with regulatory requirements.
