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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
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