ELECTRONIC SIGNATURES IN GLOBAL AND NATIONAL COMMERCE ACT

ELECTRONIC SIGNATURES IN GLOBAL AND
NATIONAL COMMERCE ACT

June 30, 2000

[S. 761]

Electronic Signatures in Global and National Commerce Act. Contracts. 15 USC 7001 note.

15 USC 7001.

Public Law 106�229 106th Congress

An Act

To facilitate the use of electronic records and signatures in interstate or foreign commerce.

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,

SECTION 1. 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 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 suchtransaction may not be denied legal effect, validity, or enforce�ability solely because it is in electronic form; and

(2) a contract relating to such transaction may not bedenied 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 imposedby 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 electronicrecords or electronic signatures, other than a governmental agency with respect to a record other than a contract to which it is a party.

(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 trans�actions in or affecting interstate or foreign commerce be pro�vided or made available to a consumer in writing, the use of an electronic record to provide or make available (whichever

is required) such information satisfies the requirement that such information be in writing if�

(A) the consumer has affirmatively consented to suchuse and has not withdrawn such consent;

(B) the consumer, prior to consenting, is provided witha clear and conspicuous statement�

(i) informing the consumer of (I) any right or optionof 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� relation�ship), or fees in the event of such withdrawal;

(ii) informing the consumer of whether the consentapplies (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 beprovided or made available during the course of the parties� relationship;

(iii) describing the procedures the consumer mustuse 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 con-sent, the consumer may, upon request, obtain a paper copy of an electronic record, and (II) whether any fee will be charged for such copy;

(i) prior to consenting, is provided with a statementof the hardware and software requirements for access to and retention of the electronic records; and

(ii) consents electronically, or confirms his or herconsent 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 accordancewith 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 imposi-tion 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

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 acknowledg�ment 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 con�sumer 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 con�sumer 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 other�wise 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 thecontract or other record; and

(B) remains accessible to all persons who are entitledto 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,

available, or retained in its original form, or provides con
�sequences if the contract or other record is not provided, avail
�able, 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, regula�tion, 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 signa�ture 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 is the specific intent of the Congress that Applicability. 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, reck-less, or intentional tortious conduct;

(2) the agent or broker was not involved in the developmentor establishment of such electronic procedures; and

(3) the agent or broker did not deviate from such proce-dures.

SEC. 102. EXEMPTION TO PREEMPTION. 15 USC 7002.

(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�

(1) constitutes an enactment or adoption of the UniformElectronic 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 areconsistent with this title and title II; and

(ii) such alternative procedures or requirements do notrequire, or accord greater legal status or effect to, the implementation or application of a specific technology or technical specification for performing the functions of cre�ating, storing, generating, receiving, communicating, or authenticating electronic records or electronic signatures; and

(B) if enacted or adopted after the date of the enactmentof this Act, makes specific reference to this Act.

(b) EXCEPTIONS FOR ACTIONS BY STATES AS MARKET PARTICI-PANTS.�Subsection (a)(2)(A)(ii) shall not apply to the statutes, regu�lations, 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.

15 USC 7003. SEC. 103. 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 governingthe creation and execution of wills, codicils, or testamentary trusts;

(2) a State statute, regulation, or other rule of law gov-erning 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, oreviction, or the right to cure, under a credit agreement secured by, or a rental agreement for, a primary residence of an individual;

(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 transportationor handling of hazardous materials, pesticides, or other toxic
or dangerous materials.

(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 protec�tion of consumers. Within 3 years after the date of enactment Deadline. of this Act, the Assistant Secretary shall submit a report to Reports. 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 excep
�tions identified in such finding.

SEC. 104. APPLICABILITY TO FEDERAL AND STATE GOVERNMENTS. 15 USC 7004.

(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 Stateregulatory 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 statuteto issue orders or guidance, the issuance of orders or guid�ance 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.�Notwith-
standing 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 consistentwith section 101;

(B) such regulation, order, or guidance does not addto the requirements of such section; and

(i) there is a substantial justification for the regula-tion, order, or guidance;

(ii) the methods selected to carry out that purpose�

(I) are substantially equivalent to the require-ments imposed on records that are not electronic records; and

(II) will not impose unreasonable costs on theacceptance and use of electronic records; and

(iii) the methods selected to carry out that purposedo not require, or accord greater legal status or effect to, the implementation or application of a specific tech�nology 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 sub�section (c)(1), a Federal regulatory agency or State regu�latory 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 interestrelating to law enforcement or national security for imposing such requirement; and

(ii) imposing such requirement is essential toattaining such interest.

(4) EXCEPTIONS FOR ACTIONS BY GOVERNMENT AS MARKET PARTICIPANT.�Paragraph (2)(C)(iii) shall not apply to the stat�utes, regulations, or other rules of law governing procurement by the Federal or any State government, or any agency or instrumentality thereof.

(1) REIMPOSING PAPER PROHIBITED.�Nothing in subsection

(b) (other than paragraph (3)(B) thereof) shall be construedto 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.

(2) CONTINUING OBLIGATION UNDER GOVERNMENT PAPER�WORK 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 30 days after the date of enact-Deadline. ment of this Act, the Securities and Exchange Commission Regulations. 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 invest�ment company that is registered under the Investment Com�pany 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 Commu�nications Commission shall not hold any contract for telecommuni�cations 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 authoriza�tion.

SEC. 105. STUDIES. Deadlines. 15 USC 7005.

(a) DELIVERY.�Within 12 months after the date of the enact-Mail. ment 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. The Secretary shall submit a Reports. report to the Congress regarding the results of such inquiry by the conclusion of such 12-month period.

(b) STUDY OF ELECTRONIC CONSENT.�Within 12 months after Reports. 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. In conducting this evaluation, the Secretary and the Public Commission shall solicit comment from the general public, consumer information. representatives, and electronic commerce businesses.

15 USC 7006. SEC. 106. 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 signa�ture�� 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, data�bases, or the like.

(8) PERSON.�The term ��person�� means an individual, cor�poration, 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 organiza�tion 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 disposi-tion of (i) personal property, including goods and intangi�bles, (ii) services, and (iii) any combination thereof; and

(B) the sale, lease, exchange, or other disposition ofany interest in real property, or any combination thereof.

SEC. 107. EFFECTIVE DATE. 15 USC 7001

(a) IN GENERAL.�Except as provided in subsection (b), this ^note.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 oflaw, or

(ii) a State statute, regulation, or other rule oflaw 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 require�ment.

(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 there
�under, 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 publishesrevised 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.

(1) TRANSFERABLE RECORD.�The term ��transferable record��
means an electronic record that�

(A) would be a note under Article 3 of the UniformCommercial Code if the electronic record were in writing;

(B) the issuer of the electronic record expressly hasagreed is a transferable record; and

(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 per�son 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 recordexists which is unique, identifiable, and, except as otherwise provided in paragraphs (4), (5), and (6), unalterable;

(B) if the authoritative copy indicates that the transfer-able record has been transferred, the person to which the transferable record was most recently transferred;

(3) the authoritative copy is communicated to and main-tained by the person asserting control or its designated custo�dian;

(4) copies or revisions that add or change an identifiedassignee 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 ofa copy is readily identifiable as a copy that is not the authori�tative copy; and

(6) any revision of the authoritative copy is readily identifi-able 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 require�ments 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 transfer�able 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 busi�ness records sufficient to review the terms of the transferable record and to establish the identity of the person having control of the transferable record.

(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.

This title shall be effective 90 days after the date of enactment ^note.of this Act.

SEC. 301. PRINCIPLES GOVERNING THE USE OF ELECTRONIC SIGNA-15 USC 7031. TURES IN INTERNATIONAL TRANSACTIONS.

(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 speci
�fied 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 pur
�pose of facilitating the development of interstate and foreign
commerce.

(A) Remove paper-based obstacles to electronic trans-actions 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 theappropriate authentication technologies and implementa�tion models for their transactions, with assurance that those technologies and implementation models will be rec�ognized and enforced.

(C) Permit parties to a transaction to have the oppor-tunity to prove in court or other proceedings that their authentication approaches and their transactions are valid.

(D) Take a nondiscriminatory approach to electronicsignatures and authentication methods from other jurisdic�tions.

(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.

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 per�sonal, 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.��.

HOUSE REPORTS: No. 106�341, accompanying H.R. 1714, Pt. 1 (Comm. on Com
�merce) and Pt. 2 (Comm. on the Judiciary).
SENATE REPORTS: Nos. 106�131 (Comm. on Commerce, Science, and Transpor
�

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.