October, 2000

The Office of Management and Budge (OMB) issued guidelines regarding the interpretation and implementation of the Electronic Signatures in Global and National Commerce Act (E-SIGN). The purpose of E-SIGN is to eliminate barriers to the use of electronic technology to form and sign contracts, collect and store documents, and transmit notices and disclosures. E-SIGN was enacted on June 30, 2000 and generally became effective on October 1, 2000.

Under E-SIGN, consumers can purchase insurance, obtain a mortgage, open a brokerage account and engage in other transactions without waiting for physical documents to be mailed back. Consumers are required to affirmatively consent to the use of electronic notices and records. Prior to granting such consent, the company must provide the consumer notice of his or her rights.