The Electronic Signatures in Global and National Commerce Act, otherwise known as the E-SIGN Act, took effect. Congress passed the bill nearly unanimously last year, and President Clinton signed it into law last June 30. The statute does not, however, require any business or individual to use e-signatures or even to accept them from others. But E-SIGN proponents ultimately accepted narrower language because of lawmakers' concerns about the potential for consumer fraud. People familiar with e-signature technology cite the law's multiple business benefits.
Companies can save money on paperwork, filing space, travel costs and more.
Companies also can save time - up to three or four days for each transaction or contract completed entirely electronically, Underwood estimates. Businesses can cut costs internally, too, by adopting e-signature technology as a way for chief financial officers to sign off on expense reports, travel requests and other paperwork. And the E-SIGN Act even covers notary publics. If two parties electronically sign documents that require a notary's signature, the notary also can sign electronically. It throws open the doors.