Disclaimer: The Electronic Commerce Security Act (ECSA) was repealed and replaced with the Uniform Electronic Transaction Act (UETA), effective June 25, 2021.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.

We do not see any problems with accepting scanned versions of customer signatures on loan disclosures (though we do not recommend accepting scanned signatures on the mortgage and loan agreements themselves). Under the Illinois Electronic Commerce Security Act, “where a rule of law requires a signature . . . an electronic signature satisfies that rule of law” (though with several exceptions, including estate planning documents and negotiable instruments). 5 ILCS 175/5-120. Similarly, the federal Electronic Signatures in Global and National Commerce (ESIGN) Act states that “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.” 15 USC 7001(a)(1).

Also, note that the Illinois Financial Institutions Electronic Documents and Digital Signature Act allows for the use of digital signatures, but it requires that a digital signature be “unique to the person using it, is capable of verification, is under the sole control of the person using it, and is linked to data in such a manner that if the data are changed, the digital signature is invalidated.” 205 ILCS 705/10(b).