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Legally Enforceable Electronic Transaction

Many organizations are sitting on the sidelines waiting for legal counsel to approve adoption of technologies that take advantage of the opportunity afforded by legislation that grants electronically signed documents legal enforceability. CFOs are eager to reduce operational costs with these technologies, but legal counsel is hesitant to move forward.

According to U.S. E-Sign legislation, passed in October of 2000, "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."
1

The IntelliSafe Vault is an integral component of a total solution to help organizations address the legislative or industry requirements for electronically signed and stored documents such as E-Sign, UETA, eUCP, 21 CFR Part 11, the US Government Paperwork Elimination Act, and the UN Model Law on Electronic Signatures.

To have non-repudiable transactions or transactions that will hold up in a court of law, you must answer the who, what, and when questions around the transaction.

In a court of law, computer records are considered hearsay unless they meet very specific federal rules2 that allow computer records to be admissible in a court as direct evidence. Those requirements deal with a "knowledgeable" person conducting the transaction, the authenticity of the content, and the time the act or event occurred or the who, what, and when questions.

Unlike signing solutions that send signed documents from one party to another, the Vault actually requires the signers to come to the original document, rather than releasing that authentic original itself. By maintaining the original inside a secure, access controlled Vault with a full audit trail on document activities, the document remains tamper proof and unchanged so that authenticity is ensured.

The IntelliSafe Vault provides all the technology mechanisms to meet these legislative requirements. The Vault provides extensive auditing functions which record the action performed to the document (viewing, signing, deleting, transferring ownership). Each audit record includes an authoritative time and date stamp. An IntelliSafe auditor component external to the system monitors for tampering. Any attempt to modify records, signatures, or their audit trails is immediately reported to the system administrator and/or organizational authorities. When IntelliSafe security procedures are implemented and physical access to the system is controlled, the records created and stored in the Vault are non-repudiable, legally enforceable records.


1 Section 101, (a), (1)
2According to Federal Rules of Evidence, 803, admissible electronic records must:

a) record an act or event
b) be made at the time of the event
c) be created by a knowledgeable person
d) be kept in the course of regular business
e) be created in the regular practice of the business,
f) have testimony is offered by the evidence custodian that proves the records are what they claim to be

 

  IntelliSafe Vault Reduces the Risk of Doing Electronic Business
U.S. E-Sign Legislation
UETA  


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