I
106TH CONGRESS
1ST SESSION
H. R. 2626
To amend certain consumer protection laws to facilitate the electronic delivery
of disclosures and other information.
IN THE HOUSE OF REPRESENTATIVES
JULY 27, 1999
Mrs. ROUKEMA (for herself, Mr. LAZIO, and Mr. INSLEE) introduced the fol-
lowing bill; which was referred to the Committee on Banking and Finan-
cial Services
A BILL
To amend certain consumer protection laws to facilitate the
electronic delivery of disclosures and other information.
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ‘‘Electronic Disclosures
Delivery Act of 1999’’.
SEC. 2. FINDINGS AND PURPOSES.
(a) FINDINGS.—The Congress finds as follows:
(1) Dramatic growth in the use of the Internet
is enabling more consumers to access financial prod-
ucts and services on-line.
(2) Electronic media also make it possible for
consumer disclosures and other information to be
provided more efficiently and in a more user-friendly
fashion than in static, paper formats.
(3) To take full advantage of this new tech-
nology, however, it is desirable to clarify the provi-
sions of certain consumer protection laws to facili-
tate delivery of disclosures and other information
electronically.
(b) PURPOSES.—
(1) IN GENERAL.—The purpose of this Act is to
provide a procedure by which persons subject to
Federal consumer protections laws may satisfy re-
quirements for provision of disclosures, notices, and
other information through electronic communications
with the informed consent of consumers.
(2) SCOPE.—It is the purpose of this Act to ad-
dress only electronic delivery of information to and
from consumers and financial services providers and
not to affect the substantive rights and responsibil-
ities of any person or the content of any disclosure,
including both the timing and format of disclosures
and information to be provided.
SEC. 3. ELECTRONIC COMMUNICATIONS MODERNIZATION.
(a) AMENDMENTS TO TRUTH IN LENDING ACT.—
(1) DEFINITIONS.—Section 103 of the Truth in
Lending Act (15 U.S.C. 1602) is amended by add-
ing at the end the following new subsection:
‘‘(cc) DEFINITIONS RELATING TO ELECTRONIC COM-
MUNICATION.—
‘‘(1) ACKNOWLEDGMENT.—The term ‘acknowl-
edgment’ includes an electronic acknowledgment.
‘‘(2) COMMUNICATION.—The term ‘communica-
tion’ means any provision of information pursuant to
this title and includes the delivery or provision of
disclosures, booklets, notices, copies, written or
printed materials, documents, records, statements,
authorizations, and acknowledgments.
‘‘(3) ELECTRONIC
ACKNOWLEDGMENT.—The
term ‘electronic acknowledgment’ means an elec-
tronic identifying sound, symbol, or process, at-
tached to or logically associated with an electronic
communication and executed or adopted by a person
with the intent and effect of—
‘‘(A) establishing the assent or association
of the person to the electronic communication
in the same manner and to the same extent
that a physical signature establishes the assent
or association of an identifiable person to a
physical document; and
‘‘(B) establishing, or permitting the estab-
lishment of, the form and content beyond a rea-
sonable doubt as of the time of acknowledgment
of an electronic communication to which the
electronic acknowledgment is attached.
‘‘(4) ELECTRONIC COMMUNICATION.—The term
‘electronic communication’ means a communication
created, stored, generated, received, or transmitted
by electronic means in a format that allows visual
text to be displayed.
‘‘(5) 
ELECTRONIC.—The 
term 
‘electronic’
means of or relating to technology having electrical,
digital, magnetic, optical, electromagnetic, or similar
capabilities regardless of medium.’’.
(2) ELECTRONIC COMMUNICATION.—The Truth
in Lending Act (15 U.S.C. 1601 et seq.) is amended
by inserting after section 103 the following new sec-
tion:
‘‘SEC. 103A. ELECTRONIC COMMUNICATIONS.
‘‘(a) IN GENERAL.—Any communication delivered
pursuant to this title (other than chapter 5) may be deliv-
ered in the form of an electronic communication, and any
acknowledgment which may be affixed to a communication
pursuant to this title (other than chapter 5) may be af-
fixed as an electronic acknowledgment to an electronic
nication provided in accordance with this section,
prescribe procedures which provide consumers with
the option to request paper copies of any such com-
munications if the Board finds that such procedures
are necessary and appropriate to supplement elec-
tronic communications.’’.
(b) AMENDMENTS TO EQUAL CREDIT OPPORTUNITY
ACT.—
(1) DEFINITIONS.—Section 702 of the Equal
Credit Opportunity Act (15 U.S.C. 1691a) is
amended by adding at the end the following new
subsection:
‘‘(g) DEFINITIONS RELATING TO ELECTRONIC COM-
MUNICATIONS.—
‘‘(1) ACKNOWLEDGMENT.—The term ‘acknowl-
edgment’ includes an electronic acknowledgment.
‘‘(2) COMMUNICATION.—The term ‘communica-
tion’ means any provision of information pursuant to
this title and includes the delivery or provision of
disclosures, booklets, notices, copies, written or
printed materials, documents, records, statements,
authorizations, and acknowledgments.
‘‘(3) ELECTRONIC
ACKNOWLEDGMENT.—The
term ‘electronic acknowledgment’ means an elec-
tronic identifying sound, symbol, or process, at-
tached to or logically associated with an electronic
communication and executed or adopted by a person
with the intent and effect of—
‘‘(A) establishing the assent or association
of the person to the electronic communication
in the same manner and to the same extent
that a physical signature establishes the assent
or association of an identifiable person to a
physical document; and
‘‘(B) establishing, or permitting the estab-
lishment of, the form and content beyond a rea-
sonable doubt as of the time of acknowledgment
of an electronic communication to which the
electronic acknowledgment is attached.
‘‘(4) ELECTRONIC COMMUNICATION.—The term
‘electronic communication’ means a communication
created, stored, generated, received, or transmitted
by electronic means in a format that allows visual
text to be displayed.
‘‘(5) 
ELECTRONIC.—The 
term 
‘electronic’
means of or relating to technology having electrical,
digital, magnetic, optical, electromagnetic, or similar
capabilities regardless of medium.’’.
(2) ELECTRONIC COMMUNICATION.—The Equal
Credit Opportunity Act (15 U.S.C. 191 et seq.) is
amended by inserting after section 702 the following
new section:
‘‘SEC. 702A. ELECTRONIC COMMUNICATIONS.
‘‘(a) IN GENERAL.—Any communication delivered
pursuant to this title may be delivered in the form of an
electronic communication, and any acknowledgment which
may be affixed to a communication pursuant to this title
may be affixed as an electronic acknowledgment to an elec-
tronic communication if the person who is sent such com-
munication or who provides an acknowledgment—
‘‘(1) is provided with—
‘‘(A) a description of the types of commu-
nications to be provided electronically;
‘‘(B) an explanation of how to access and
retain such electronic communications which di-
rects the person’s attention to consideration of
the person’s ability to print or download such
disclosures; and
‘‘(C) a notice of the period of time that the
communications will be available to such person
in electronic form; and
‘‘(2) expressly consents by electronic means to
the electronic communication or the use of an elec-
tronic acknowledgment.
‘‘(b) REGULATIONS.—The Board may—
‘‘(1) from time to time prescribe regulations to
clarify the procedures applicable to the delivery of
electronic communications provided for in this sec-
tion; and
‘‘(2) without affecting or impairing the legal ef-
fectiveness of the delivery of any electronic commu-
nication provided in accordance with this section,
prescribe procedures which provide consumers with
the option to request paper copies of any such com-
munications if the Board finds that such procedures
are necessary and appropriate to supplement elec-
tronic communications.’’.
(c) AMENDMENTS
TO FAIR CREDIT REPORTING
ACT.—
(1) DEFINITIONS.—Section 603 of the Fair
Credit Reporting Act (15 U.S.C. 1681a) is amended
by adding at the end the following new subsection:
‘‘(q) DEFINITIONS RELATING TO ELECTRONIC COM-
MUNICATION.—
‘‘(1) ACKNOWLEDGMENT.—The term ‘acknowl-
edgment’ includes an electronic acknowledgment.
‘‘(2) COMMUNICATION.—The term ‘communica-
tion’ means any provision of information pursuant to
this title and includes the delivery or provision of
disclosures, booklets, notices, copies, written or
printed materials, documents, records, statements,
authorizations, and acknowledgments.
‘‘(3) ELECTRONIC
ACKNOWLEDGMENT.—The
term ‘electronic acknowledgment’ means an elec-
tronic identifying sound, symbol, or process, at-
tached to or logically associated with an electronic
communication and executed or adopted by a person
with the intent and effect of—
‘‘(A) establishing the assent or association
of the person to the electronic communication
in the same manner and to the same extent
that a physical signature establishes the assent
or association of an identifiable person to a
physical document; and
‘‘(B) establishing, or permitting the estab-
lishment of, the form and content beyond a rea-
sonable doubt as of the time of acknowledgment
of an electronic communication to which the
electronic acknowledgment is attached.
‘‘(4) ELECTRONIC COMMUNICATION.—The term
‘electronic communication’ means a communication
created, stored, generated, received, or transmitted
by electronic means in a format that allows visual
text to be displayed.
‘‘(C) a notice of the period of time that the
communications will be available to such person
in electronic form; and
‘‘(2) expressly consents by electronic means to
the electronic communication or the use of an elec-
tronic acknowledgment.’’.
(d) AMENDMENTS TO REAL ESTATE SETTLEMENT
PROCEDURES ACT OF 1974.—
(1) DEFINITIONS.—Section 3 of the Real Es-
tate Settlement Procedures Act (12 U.S.C. 2602) is
amended—
(A) by striking ‘‘and’’ at the end of para-
graph (7);
(B) by striking the period at the end of
paragraph (8) and inserting a semicolon; and
(C) by adding at the end the following new
paragraphs:
‘‘(9) the term ‘acknowledgment’ includes an
electronic acknowledgment;
‘‘(10) the term ‘communication’ means any pro-
vision of information pursuant to this title and in-
cludes the delivery or provision of disclosures, book-
lets, notices, copies, written or printed materials,
documents, records, statements, authorizations, and
acknowledgments;
‘‘(11) the term ‘electronic acknowledgment’
means an electronic identifying sound, symbol, or
process, attached to or logically associated with an
electronic communication and executed or adopted
by a person with the intent and effect of—
‘‘(A) establishing the assent or association
of the person to the electronic communication
in the same manner and to the same extent
that a physical signature establishes the assent
or association of an identifiable person to a
physical document; and
‘‘(B) establishing, or permitting the estab-
lishment of, the form and content beyond a rea-
sonable doubt as of the time of acknowledgment
of an electronic communication to which the
electronic acknowledgment is attached;
‘‘(12) the term ‘electronic communication’
means a communication created, stored, generated,
received, or transmitted by electronic means in a for-
mat that allows visual text to be displayed; and
‘‘(13) the term ‘electronic’ means of or relating
to technology having electrical, digital, magnetic, op-
tical, electromagnetic, or similar capabilities regard-
less of medium.’’.
(2) ELECTRONIC COMMUNICATION.—The Real
Estate Settlement Procedures Act (12 U.S.C. 2601
et seq.) is amended by inserting after section 3 the
following new section:
‘‘SEC. 3A. ELECTRONIC COMMUNICATIONS.
‘‘(a) IN GENERAL.—Any communication delivered
pursuant to this Act may be delivered in the form of an
electronic communication, and any acknowledgment which
may be affixed to a communication pursuant to this Act
may be affixed as an electronic acknowledgment to an elec-
tronic communication if the person who is sent such com-
munication or who provides an acknowledgment—
‘‘(1) is provided with—
‘‘(A) a description of the types of commu-
nications to be provided electronically;
‘‘(B) an explanation of how to access and
retain such electronic communications which di-
rects the person’s attention to consideration of
the person’s ability to print or download such
disclosures; and
‘‘(C) a notice of the period of time that the
communications will be available to such person
in electronic form; and
‘‘(2) expressly consents by electronic means to
the electronic communication or the use of an elec-
tronic acknowledgment.
‘‘(b) REGULATIONS.—The Secretary may—
‘‘(1) from time to time and in consultation with
the Board of Governors of the Federal Reserve Sys-
tem, prescribe regulations to clarify the procedures
applicable to the delivery of electronic communica-
tions provided for in this section; and
‘‘(2) without affecting or impairing the legal ef-
fectiveness of the delivery of any electronic commu-
nication provided in accordance with this section,
prescribe procedures which provide consumers with
the option to request paper copies of any such com-
munications if the Secretary finds that such proce-
dures are necessary and appropriate to supplement
electronic communications.’’.
(e) AMENDMENTS TO TRUTH IN SAVINGS ACT.—
(1) DEFINITIONS.—Section 274 of the Truth in
Savings Act (12 U.S.C. 4313) is amended by adding
at the end the following new paragraphs:
‘‘(9) ACKNOWLEDGMENT.—The term ‘acknowl-
edgment’ includes an electronic acknowledgment.
‘‘(10) COMMUNICATION.—The term ‘commu-
nication’ means any provision of information pursu-
ant to this title and includes the delivery or provi-
sion of disclosures, booklets, notices, copies, written
or printed materials, documents, records, state-
ments, authorizations, and acknowledgments.
‘‘(11) ELECTRONIC
ACKNOWLEDGMENT.—The
term ‘electronic acknowledgment’ means an elec-
tronic identifying sound, symbol, or process, at-
tached to or logically associated with an electronic
communication and executed or adopted by a person
with the intent and effect of—
‘‘(A) establishing the assent or association
of the person to the electronic communication
in the same manner and to the same extent
that a physical signature establishes the assent
or association of an identifiable person to a
physical document; and
‘‘(B) establishing, or permitting the estab-
lishment of, the form and content beyond a rea-
sonable doubt as of the time of acknowledgment
of an electronic communication to which the
electronic acknowledgment is attached.
‘‘(12) 
ELECTRONIC
COMMUNICATION.—The
term ‘electronic communication’ means a commu-
nication created, stored, generated, received, or
transmitted by electronic means in a format that al-
lows visual text to be displayed.
‘‘(13) 
ELECTRONIC.—The 
term 
‘electronic’
means of or relating to technology having electrical,
digital, magnetic, optical, electromagnetic, or similar
capabilities regardless of medium.’’.
(2) ELECTRONIC COMMUNICATION.—The Truth
in Savings Act (12 U.S.C. 4301 et seq.) is amended
by inserting after section 274 the following new sec-
tion:
‘‘SEC. 275. ELECTRONIC COMMUNICATIONS.
‘‘(a) IN GENERAL.—Any communication delivered
pursuant to this title may be delivered in the form of an
electronic communication, and any acknowledgment which
may be affixed to a communication pursuant to this title
may be affixed as an electronic acknowledgment to an elec-
tronic communication if the person who is sent such com-
munication or who provides an acknowledgment—
‘‘(1) is provided with—
‘‘(A) a description of the types of commu-
nications to be provided electronically;
‘‘(B) an explanation of how to access and
retain such electronic communications which di-
rects the person’s attention to consideration of
the person’s ability to print or download such
disclosures; and
‘‘(C) a notice of the period of time that the
communications will be available to such person
in electronic form; and
‘‘(2) expressly consents by electronic means to
the electronic communication or the use of an elec-
tronic acknowledgment.
‘‘(b) REGULATIONS.—The Board may—
‘‘(1) from time to time prescribe regulations to
clarify the procedures applicable to the delivery of
electronic communications provided for in this sec-
tion; and
‘‘(2) without affecting or impairing the legal ef-
fectiveness of the delivery of any electronic commu-
nication provided in accordance with this section,
prescribe procedures which provide consumers with
the option to request paper copies of any such com-
munications if the Board finds that such procedures
are necessary and appropriate to supplement elec-
tronic communications.’’.
(f) AMENDMENTS RELATING TO CONSUMER LEAS-
ING.—
(1) DEFINITIONS.—Section 181 of the Truth in
Lending Act (15 U.S.C. 1667) is amended by add-
ing at the end the following new paragraphs:
‘‘(6) ACKNOWLEDGMENT.—The term ‘acknowl-
edgment’ includes an electronic acknowledgment.
‘‘(7) COMMUNICATION.—The term ‘communica-
tion’ means any provision of information pursuant to
this title and includes the delivery or provision of
disclosures, booklets, notices, copies, written or
printed materials, documents, records, statements,
authorizations, and acknowledgments.
‘‘(8) ELECTRONIC
ACKNOWLEDGMENT.—The
term ‘electronic acknowledgment’ means an elec-
tronic identifying sound, symbol, or process, at-
tached to or logically associated with an electronic
communication and executed or adopted by a person
with the intent and effect of—
‘‘(A) establishing the assent or association
of the person to the electronic communication
in the same manner and to the same extent
that a physical signature establishes the assent
or association of an identifiable person to a
physical document; and
‘‘(B) establishing, or permitting the estab-
lishment of, the form and content beyond a rea-
sonable doubt as of the time of acknowledgment
of an electronic communication to which the
electronic acknowledgment is attached.
‘‘(9) ELECTRONIC COMMUNICATION.—The term
‘electronic communication’ means a communication
created, stored, generated, received, or transmitted
by electronic means in a format that allows visual
text to be displayed.
‘‘(10) 
ELECTRONIC.—The 
term 
‘electronic’
means of or relating to technology having electrical,
digital, magnetic, optical, electromagnetic, or similar
capabilities regardless of medium.’’.
(2) ELECTRONIC COMMUNICATION.—Chapter 5
of the Truth in Lending Act (15 U.S.C. 1667 et
seq.) is amended by inserting after section 181 the
following new section:
‘‘SEC. 181A. ELECTRONIC COMMUNICATIONS.
‘‘(a) IN GENERAL.—Any communication delivered
pursuant to this chapter may be delivered in the form of
an electronic communication, and any acknowledgment
which may be affixed to a communication pursuant to this
chapter may be affixed as an electronic acknowledgment
to an electronic communication if the person who is sent
such 
communication 
or 
who 
provides 
an
acknowledgment—
‘‘(1) is provided with—
‘‘(A) a description of the types of commu-
nications to be provided electronically;
‘‘(B) an explanation of how to access and
retain such electronic communications which di-
rects the person’s attention to consideration of
the person’s ability to print or download such
disclosures; and
‘‘(C) a notice of the period of time that the
communications will be available to such person
in electronic form; and
‘‘(2) expressly consents by electronic means to
the electronic communication or the use of an elec-
tronic acknowledgment.
‘‘(b) REGULATIONS.—The Board may—
‘‘(1) from time to time prescribe regulations to
clarify the procedures applicable to the delivery of
electronic communications provided for in this sec-
tion; and
‘‘(2) without affecting or impairing the legal ef-
fectiveness of the delivery of any electronic commu-
nication provided in accordance with this section,
prescribe procedures which provide consumers with
the option to request paper copies of any such com-
munications if the Board finds that such procedures
are necessary and appropriate to supplement elec-
tronic communications.’’.
Æ