[106th Congress Public Law 229]
[From the U.S. Government Printing Office]
<DOC>
[DOCID: f:publ229.106]
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ELECTRONIC SIGNATURES IN GLOBAL AND NATIONAL COMMERCE ACT
[[Page 114 STAT. 464]]
Public Law 106-229
106th Congress
An Act
To facilitate the use of electronic records and signatures in interstate
or foreign commerce.
<<NOTE: June 30, 2000 - [S. 761]>> Be it enacted by the Senate and
House of Representatives of the United States of America in
Congress <<NOTE: Electronic Signatures in Global and National Commerce
Act. Contracts.>> assembled,
SECTION 1. <<NOTE: 15 USC 7001 note.>> SHORT TITLE.
This Act may be cited as the ``Electronic Signatures in Global and
National Commerce Act''.
TITLE I--ELECTRONIC RECORDS AND SIGNATURES IN COMMERCE
SEC. 101. GENERAL RULE <<NOTE: 15 USC 7001.>> OF VALIDITY.
(a) In General.--Notwithstanding any statute, regulation, or other
rule of law (other than this title and title II), 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 title 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), 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
[[Page 114 STAT. 465]]
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 title affects the content or timing of any
disclosure or other record required to be provided or
made
[[Page 114 STAT. 466]]
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 Act 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 title 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,
[[Page 114 STAT. 467]]
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), 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 title 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 <<NOTE: Applicability.>> is the specific intent
of the Congress that this title and title II 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.
SEC. 102. <<NOTE: 15 USC 7002.>> EXEMPTION TO PREEMPTION.
(a) In General.--A State statute, regulation, or other rule of law
may modify, limit, or supersede the provisions of section 101 with
respect to State law only if such statute, regulation, or rule of law--
[[Page 114 STAT. 468]]
(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 title or title II, 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 title and title II; 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 the date of the enactment of
this Act, makes specific reference to this Act.
(b) Exceptions for Actions by States as Market Participants.--
Subsection (a)(2)(A)(ii) 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) does not permit a
State to circumvent this title or title II through the imposition of
nonelectronic delivery methods under section 8(b)(2) of the Uniform
Electronic Transactions Act.
SEC. 103. <<NOTE: 15 USC 7003.>> SPECIFIC EXCEPTIONS.
(a) Excepted Requirements.--The provisions of section 101 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 101 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;
[[Page 114 STAT. 469]]
(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) to evaluate, over a period of 3 years,
whether such exceptions continue to be necessary for the
protection of consumers. <<NOTE: Deadline. Reports.>> Within 3
years after the date of enactment of this Act, 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 101
to the exceptions identified in such finding.
SEC. 104. <<NOTE: 15 USC 7004.>> APPLICABILITY TO FEDERAL AND STATE
GOVERNMENTS.
(a) Filing and Access Requirements.--Subject to subsection (c)(2),
nothing in this title 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), a Federal regulatory agency or State
regulatory agency that is responsible for rulemaking under any
other statute may interpret section 101 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 101 from adopting any regulation, order, or guidance
described in paragraph (1), unless--
(A) such regulation, order, or guidance is
consistent with section 101;
[[Page 114 STAT. 470]]
(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 101(d) 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 101(d).
(B) Paper or printed form.--Notwithstanding
subsection (c)(1), a Federal regulatory agency or State
regulatory agency may interpret section 101(d) 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)
(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.
[[Page 114 STAT. 471]]
(2) Continuing obligation under government paperwork
elimination act.--Nothing in subsection (a) or (b) 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 101(c) 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 <<NOTE: Deadline. Regulations.>> 30 days after the date
of enactment of this Act, the Securities and Exchange Commission
shall issue a regulation or order pursuant to paragraph (1)
exempting from section 101(c) 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, or concerning the issuer thereof, to be excluded from the
definition of a prospectus under section 2(a)(10)(A) of the
Securities Act of 1933.
(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.
SEC. 105. <<NOTE: Deadlines. 15 USC 7005.>> STUDIES.
(a) Delivery.--Within <<NOTE: Mail.>> 12 months after the date of
the enactment of this Act, 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. <<NOTE: Reports.>> 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 <<NOTE: Reports.>> Electronic Consent.--Within 12
months after the date of the enactment of this Act, 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 101(c)(1)(C)(ii); any burdens imposed on electronic
commerce by that provision; whether the benefits outweigh the burdens;
whether the absence of the procedure required by section
101(c)(1)(C)(ii) would increase the incidence of fraud directed against
consumers; and suggesting any revisions to the provision deemed
appropriate by the Secretary and the Commission. <<NOTE: Public
information.>> In conducting this evaluation, the Secretary and the
Commission shall solicit comment from the general public, consumer
representatives, and electronic commerce businesses.
[[Page 114 STAT. 472]]
SEC. 106. <<NOTE: 15 USC 7006.>> DEFINITIONS.
For purposes of this title:
(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, United States Code.
(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
[[Page 114 STAT. 473]]
(B) the sale, lease, exchange, or other disposition
of any interest in real property, or any combination
thereof.
SEC. 107. <<NOTE: 15 USC 7001 note.>> EFFECTIVE DATE.
(a) In General.--Except as provided in subsection (b), this title
shall be effective on October 1, 2000.
(b) Exceptions.--
(1) Record retention.--
(A) In general.--Subject to subparagraph (B), this
title 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) 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), 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.
(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, section 101(c) of this Act
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; or
(B) one year after the date of enactment of this
Act.
TITLE II--TRANSFERABLE RECORDS
SEC. 201. <<NOTE: 15 USC 7021.>> TRANSFERABLE RECORDS.
(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.
[[Page 114 STAT. 474]]
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 106 of this Act.
(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), 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.
[[Page 114 STAT. 475]]
(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.
SEC. 202. <<NOTE: 15 USC 7021 note.>> EFFECTIVE DATE.
This title shall be effective 90 days after the date of enactment of
this Act.
TITLE III--PROMOTION OF INTERNATIONAL ELECTRONIC COMMERCE
SEC. 301. PRINCIPLES <<NOTE: 15 USC 7031.>> GOVERNING THE USE OF
ELECTRONIC SIGNATURES IN INTERNATIONAL
TRANSACTIONS.
(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 101 of this Act. 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 106 of this Act.
[[Page 114 STAT. 476]]
TITLE IV--COMMISSION ON ONLINE CHILD PROTECTION
SEC. 401. AUTHORITY TO ACCEPT GIFTS.
Section 1405 of the Child Online Protection Act (47 U.S.C. 231 note)
is amended by inserting after subsection (g) the following new
subsection:
``(h) Gifts, Bequests, and Devises.--The Commission may accept, use,
and dispose of gifts, bequests, or devises of services or property, both
real (including the use of office space) and personal, for the purpose
of aiding or facilitating the work of the Commission. Gifts or grants
not used at the termination of the Commission shall be returned to the
donor or grantee.''.
Approved June 30, 2000.
LEGISLATIVE HISTORY--S. 761 (H.R. 1714):
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HOUSE REPORTS: No. 106-341, accompanying H.R. 1714, Pt. 1 (Comm. on
Commerce) and Pt. 2 (Comm. on the Judiciary).
SENATE REPORTS: Nos. 106-131 (Comm. on Commerce, Science, and
Transportation) and 106-661 (Comm. of Conference).
CONGRESSIONAL RECORD:
Vol. 145 (1999):
Nov. 19, considered and passed
Senate.
Vol. 146 (2000):
Feb. 16, considered and passed
House, amended, in lieu of H.R.
1714.
June 14, House agreed to conference
report.
June 15, 16, Senate considered and
agreed to conference report.
WEEKLY COMPILATION OF PRESIDENTIAL DOCUMENTS, Vol. 36 (2000):
June 30, Presidential remarks and statement.
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