Disclaimer: The Electronic Commerce Security Act (ECSA) was repealed and replaced with the Uniform Electronic Transaction Act (UETA), effective June 25, 2021.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

An electronic version of the indemnity bond should suffice. The general rule under Illinois law is that electronic versions of documents have “the same force and effect under the laws of this State” as documents in writing, with exceptions for negotiable instruments conferring title (such as mortgage notes). In addition, the Electronic Commerce Security Act (ECSA) establishes certain record retention practices that apply when a rule of law requires that certain documents, records or information be retained: 

(1) the electronic record and the information contained therein are accessible so as to be usable for subsequent reference at all times when such information must be retained;  

(2) the information is retained in the format in which it was originally generated, sent, or received or in a format that can be demonstrated to represent accurately the information originally generated, sent or received; and   

(3) such data as enables the identification of the origin and destination of the information, the authenticity and integrity of the information, and the date and time when it was sent or received, if any, is retained.”

It is important to note that the statute of limitations period in which a customer may demand payment on a lost CD that is later recovered is essentially open-ended — meaning that it begins to run six years after the customer first makes a demand for payment under the CD. Consequently, we recommend that you retain the electronic copies of the indemnity bond indefinitely.

For resources related to our guidance, please see:

• 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.”)

• 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.”)

• UCC, 810 ILCS 5/3-118(e) (“An action to enforce the obligation of a party to a certificate of deposit to pay the instrument must be commenced within 6 years after demand for payment is made to the maker, but if the instrument states a due date and the maker is not required to pay before that date, the 6-year period begins when a demand for payment is in effect and the due date has passed.”)