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We are converting to a paperless document imaging system for our deposit accounts with the goal of storing all of our documents electronically, including signature cards. Do we need to retain original signature cards that were signed in person? – IBA Compliance Connection

IBA Compliance Connection

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We are converting to a paperless document imaging system for our deposit accounts with the goal of storing all of our documents electronically, including signature cards. Do we need to retain original signature cards that were signed in person?

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Disclaimer: The Electronic Commerce Security Act (ECSA) was repealed and replaced with the Uniform Electronic Transaction Act (UETA), effective June 25, 2021. Please note that this change may affect the continued accuracy of this guidance as it pertains to the ECSA.

No, your bank is not required to retain paper copies of executed signature cards.  Both Illinois and federal law provide that an electronic signature may not be denied legal effect, validity, or enforceability solely because it is in electronic form.

For resources related to our guidance, please see:

  • Electronic Signatures in Global and National Commerce (ESIGN) Act, 15 USC 7001(a)(1) (“A signature, contract, or other record . . . may not be denied legal effect, validity, or enforceability solely because it is in electronic form.”)
  • Electronic Commerce Security Act, 5 ILCS 175/5-110 (“Information, records, and signatures shall not be denied legal effect, validity, or enforceability solely on the grounds that they are in electronic form.”)
  • Financial Institutions Electronic Documents and Digital Signature Act, 205 ILCS 705/10(a) (“If in the regular course of business, a financial institution possesses, records, or generates any document, representation, image, substitute check, reproduction, or combination thereof . . . that accurately reproduces, comprises, or records the agreement, transaction, act, occurrence, or event . . . [it] shall have the same force and effect under the laws of this State as one comprised, recorded, or created on paper or other tangible form by writing, typing, printing, or similar means.”)