Electronic Signatures in Global and National Commerce Act
PL 106-229 (S.761), enacted 06/30/2000

114 STAT. 464 
PUBLIC LAW 1 0 6 - 2 2 9 - J U N E 30, 2000 
June 30, 2000 
[S. 761] 
Electronic 
Signatures in 
Global and 
National 
Commerce Act. 
Contracts. 
15 u s e 7001 
note. 
Public Law 106-229 
106th Congress 
An Act 
To facilitate the use of electronic records and signatures in interstate or foreign 
commerce. 
Be it enacted by the Senate and House of Representatives of 
the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE. 
This Act may be cited as the "Electronic Signatures in Global 
and National Commerce Act". 
TITLE I—ELECTRONIC RECORDS AND 
SIGNATURES IN COMMERCE 
15 u s e 7001. 
SEC. 101. GENERAL RULE OF VALIDITY. 
(a) IN GENERAL.—Notwithstanding any statute, regulation, or 
other rule of law (other than this title and title II), with respect 
to any transaction in or affecting interstate or foreign commerce— 
(1) a signature, contract, or other record relating to such 
transaction may not be denied legal effect, validity, or enforce-
ability solely because it is in electronic form; and 
(2) a contract relating to such transaction may not be 
denied legal effect, validity, or enforceability solely because 
an electronic signature or electronic record was used in its 
formation. 
(b) PRESERVATION OF RIGHTS AND OBLIGATIONS.—This title does 
not— 
(1) limit, alter, or otherwise affect any requirement imposed 
by a statute, regulation, or rule of law relating to the rights 
and obligations of persons under such statute, regulation, or 
rule of law other than a requirement that contracts or other 
records be written, signed, or in nonelectronic form; or 
(2) require any person to agree to use or accept electronic 
records or electronic signatures, other than a governmental 
agency with respect to a record other than a contract to which 
it is a party. 
(c) CONSUMER DISCLOSURES.— 
(1) CONSENT TO ELECTRONIC RECORDS.—Notwithstanding 
subsection (a), if a statute, regulation, or other rule of law 
requires that information relating to a transaction or trans-
actions in or affecting interstate or foreign commerce be pro-
vided or made available to a consumer in writing, the use 
of an electronic record to provide or make available (whichever 
PUBLIC LAW 1 0 6 - 2 2 9 - J U N E 30, 2000 
114 STAT. 465 
is required) such information satisfies the requirement that 
such information be in writing if— 
(A) the consumer has affirmatively consented to such 
use and has not withdrawn such consent; 
(B) the consumer, prior to consenting, is provided with 
a clear and conspicuous statement— 
(i) informing the consumer of (I) any right or option 
of the consumer to have the record provided or made 
available on paper or in nonelectronic form, and (II) 
the right of the consumer to withdraw the consent 
to have the record provided or made available in an 
electronic form and of any conditions, consequences 
(which may include termination of the parties' relation-
ship), or fees in the event of such withdrawal; 
(ii) informing the consumer of whether the consent 
applies (I) only to the particular transaction which 
gave rise to the obligation to provide the record, or 
(II) to identified categories of records that may be 
provided or made available during the course of the 
parties' relationship; 
(iii) describing the procedures the consumer must 
use to withdraw consent as provided in clause (i) and 
to update information needed to contact the consumer 
electronically; and 
(iv) informing the consumer (I) how, after the con-
sent, the consumer may, upon request, obtain a paper 
copy of an electronic record, and (II) whether any fee 
will be charged for such copy; 
(C) the consumer— 
(i) prior to consenting, is provided with a statement 
of the hardware and software requirements for access 
to and retention of the electronic records; and 
(ii) consents electronically, or confirms his or her 
consent electronically, in a manner that reasonably 
demonstrates that the consumer can access information 
in the electronic form that will be used to provide 
the information that is the subject of the consent; 
and 
(D) after the consent of a consumer in accordance 
with subparagraph (A), if a change in the hardware or 
software requirements needed to access or retain electronic 
records creates a material risk that the consumer will 
not be able to access or retain a subsequent electronic 
record that was the subject of the consent, the person 
providing the electronic record— 
(i) provides the consumer with a statement of (I) 
the revised hardware and software requirements for 
access to and retention of the electronic records, and 
(II) the right to withdraw consent without the imposi-
tion of any fees for such withdrawal and without the 
imposition of any condition or consequence that was 
not disclosed under subparagraph (B)(i); and 
(ii) again complies with subparagraph (C). 
(2) OTHER RIGHTS.— 
(A) 
PRESERVATION 
OF 
CONSUMER 
PROTECTIONS.— 
Nothing in this title affects the content or timing of any 
disclosure or other record required to be provided or made 
114 STAT. 466 
PUBLIC LAW 106-229—JUNE 30, 2000 
available to any consumer under any statute, regulation, 
or other rule of law. 
(B) VERIFICATION OR ACKNOWLEDGMENT.—If a law that 
was enacted prior to this Act expressly requires a record 
to be provided or made available by a specified method 
that requires verification or acknowledgment of receipt, 
the record may be provided or made available electronically 
only if the method used provides verification or acknowledg-
ment of receipt (whichever is required). 
(3) EFFECT OF FAILURE TO OBTAIN ELECTRONIC CONSENT 
OR 
CONFIRMATION 
OF CONSENT.—The legal 
effectiveness, 
validity, or enforceability of any contract executed by a con-
sumer shall not be denied solely because of the failure to 
obtain electronic consent or confirmation of consent by that 
consumer in accordance with paragraph (l)(C)(ii). 
(4) PROSPECTIVE EFFECT.—Withdrawal of consent by a con-
sumer shall not affect the legal effectiveness, validity, or 
enforceability of electronic records provided or made available 
to that consumer in accordance with pEiragraph (1) prior to 
implementation of the consumer's withdrawal of consent. A 
consumer's withdrawal of consent shall be effective within a 
reasonable period of time after receipt of the withdrawal by 
the provider of the record. Failure to comply with paragraph 
(1)(D) may, at the election of the consumer, be treated as 
a withdrawal of consent for purposes of this paragraph. 
(5) PRIOR CONSENT.—This subsection does not apply to 
£iny records that are provided or made available to a consumer 
who has consented prior to the effective date of this title to 
receive such records in electronic form as permitted by any 
statute, regulation, or other rule of law. 
(6) ORAL COMMUNICATIONS.—An oral communication or a 
recording of an oral communication shall not qualify as an 
electronic record for purposes of this subsection except as other-
wise provided under applicable law. 
(d) RETENTION OF CONTRACTS AND RECORDS.— 
(1) ACCURACY AND ACCESSIBILITY.—If a statute, regulation, 
or other rule of law requires that a contract or other record 
relating to a transaction in or affecting interstate or foreign 
commerce be retained, that requirement is met by retaining 
£in electronic record of the information in the contract or other 
record that— 
(A) accurately reflects the information set forth in the 
contract or other record; and 
(B) remains accessible to all persons who are entitled 
to access by statute, regulation, or rule of law, for the 
period required by such statute, regulation, or rule of law, 
in a form that is capable of being accurately reproduced 
for later reference, whether by transmission, printing, or 
otherwise. 
(2) EXCEPTION.—^A requirement to retain a contract or other 
record in accordance with paragraph (1) does not apply to 
any information whose sole purpose is to enable the contract 
or other record to be sent, communicated, or received. 
(3) ORIGINALS.—If a statute, regulation, or other rule of 
law requires a contract or other record relating to a transaction 
in or affecting interstate or foreign commerce to be provided. 
PUBLIC LAW 1 0 6 - 2 2 9 - J U N E 30, 2000 
114 STAT. 467 
available, or retained in its original form, or provides con-
sequences if the contract or other record is not provided, avail-
able, or retained in its original form, that statute, regulation, 
or rule of law is satisfied by an electronic record that complies 
with paragraph (1). 
(4) CHECKS.—If a statute, regulation, or other rule of law 
requires the retention of a check, that requirement is satisfied 
by retention of an electronic record of the information on the 
front and back of the check in accordance with paragraph 
(1). 
(e) ACCURACY AND ABILITY TO RETAIN CONTRACTS AND OTHER 
RECORDS.—Notwithstanding subsection (a), if a statute, regulation, 
or other rule of law requires that a contract or other record relating 
to a transaction in or affecting interstate or foreign commerce 
be in writing, the legal effect, validity, or enforceability of an 
electronic record of such contract or other record may be denied 
if such electronic record is not in a form that is capable of being 
retained and accurately reproduced for later reference by all parties 
or persons who are entitled to retain the contract or other record. 
(f) PROXIMITY.—Nothing in this title affects the proximity 
required by any statute, regulation, or other rule of law with 
respect to any warning, notice, disclosure, or other record required 
to be posted, displayed, or publicly affixed. 
(g) NOTARIZATION AND ACKNOWLEDGMENT.—If a statute, regula-
tion, or other rule of law requires a signature or record relating 
to a transaction in or affecting interstate or foreign commerce 
to be notarized, acknowledged, verified, or made under oath, that 
requirement is satisfied if the electronic signature of the person 
authorized to perform those acts, together with all other information 
required to be included by other applicable statute, regulation, 
or rule of law, is attached to or logicaJly associated with the signa-
ture or record. 
(h) ELECTRONIC AGENTS.—^A contract or other record relating 
to a transaction in or affecting interstate or foreign commerce 
may not be denied legal effect, validity, or enforceability solely 
because its formation, creation, or delivery involved the action of 
one or more electronic agents so long as the action of any such 
electronic agent is legally attributable to the person to be bound. 
(i) INSURANCE.—It is the specific intent of the Congress that Applicability. 
this title and title II apply to the business of insurance. 
(j) INSURANCE AGENTS AND BROKERS.—^An insurance agent or 
broker acting under the direction of a party that enters into a 
contract by means of an electronic record or electronic signature 
may not be held liable for any deficiency in the electronic procedures 
agreed to by the parties under that contract if— 
(1) the agent or broker has not engaged in negligent, reck-
less, or intentional tortious conduct; 
(2) the agent or broker was not involved in the development 
or establishment of such electronic procedures; and 
(3) the agent or broker did not deviate from such proce-
dures. 
SEC. 102. EXEMPTION TO PREEMPTION. 
15 USC 7002. 
(a) IN GENERAL.—^A State statute, regulation, or other rule 
of law may modify, limit, or supersede the provisions of section 
101 with respect to State law only if such statute, regulation, 
or rule of law— 
114 STAT. 468 
PUBLIC LAW 106-229-^UNE 30, 2000 
(1) constitutes an enactment or adoption of the Uniform 
Electronic Transactions Act as approved and recommended for 
enactment in all the States by the National Conference of 
Commissioners on Uniform State Laws in 1999, except that 
any exception to the scope of such Act enacted by a State 
under section 3(b)(4) of such i 
shall be preempted to the 
extent such exception is inconsistent with this title or title 
II, or would not be permitted under paragraph (2)(A)(ii) of 
this subsection; or 
(2)(A) specifies the alternative procedures or requirements 
for the use or acceptance (or both) of electronic records or 
electronic signatures to establish the legal effect, validity, or 
enforceability of contracts or other records, if— 
(i) such alternative procedures or requirements are 
consistent with this title and title II; and 
(ii) such alternative procedures or requirements do not 
require, or accord greater legal status or effect to, the 
implementation or application of a specific technology or 
technical specification for performing the functions of cre-
ating, storing, generating, receiving, communicating, or 
authenticating electronic records or electronic signatures; 
and 
(B) if enacted or adopted after the date of the enactment 
of this Act, makes specific reference to this Act. 
(b) EXCEPTIONS FOR ACTIONS BY STATES AS MARKET PARTICI-
PANTS.—Subsection (a)(2)(A)(ii) shall not apply to the statutes, regu-
lations, or other rules of law governing procurement by any State, 
or any agency or instrumentality thereof. 
(c) PREVENTION OF CIRCUMVENTION.—Subsection (a) does not 
permit a State to circumvent this title or title II through the 
imposition of nonelectronic delivery methods under section 8(b)(2) 
of the Uniform Electronic Transactions Act. 
15 use 7003. 
SEC, 103. SPECIFIC EXCEPTIONS. 
(a) EXCEPTED REQUIREMENTS.—The provisions of section 101 
shall not apply to a contract or other record to the extent it is 
governed by— 
(1) a statute, regulation, or other rule of law governing 
the creation and execution of wills, codicils, or testamentary 
trusts; 
(2) a State statute, regulation, or other rule of law gov-
erning adoption, divorce, or other matters of family law; or 
(3) the Uniform Commercial Code, as in effect in any State, 
other than sections 1-107 and 1-206 and Articles 2 and 2A. 
(b) ADDITIONAL EXCEPTIONS.—The provisions of section 101 
shall not apply to— 
(1) court orders or notices, or official court documents 
(including briefs, pleadings, and other writings) required to 
be executed in connection with court proceedings; 
(2) any notice o
f
— 
(A) the cancellation or termination of utility services 
(including water, heat, and power); 
(B) default, acceleration, repossession, foreclosure, or 
eviction, or the right to cure, under a credit agreement 
secvu"ed by, or a rental agreement for, a primeiry residence 
of an individual; 
PUBLIC LAW 106-229—JUNE 30, 2000 
114 STAT. 469 
(C) the cancellation or termination of health insurance 
or benefits or life insurance benefits (excluding annuities); 
or 
(D) recall of a product, or material failure of a product, 
that risks endangering health or safety; or 
(3) any document required to accompany any transportation 
or handling of hazardous materials, pesticides, or other toxic 
or dangerous materials. 
(c) REVIEW OF EXCEPTIONS.— 
(1) EVALUATION REQUIRED.—The Secretary of Commerce, 
acting through the Assistant Secretary for Communications 
and Information, shall review the operation of the exceptions 
in subsections (a) and (b) to evaluate, over a period of 3 years, 
whether such exceptions continue to be necessary for the protec-
tion of consumers. Within 3 years after the date of enactment Deadline, 
of this Act, the Assistant Secretary shall submit a report to Reports. 
the Congress on the results of such evaluation. 
(2) DETERMINATIONS.—If a Federal regulatory agency, with 
respect to matter within its jurisdiction, determines 2ifter notice 
and an opportunity for public comment, and publishes a finding, 
that one or more such exceptions are no longer necessary for 
the protection of consumers and eliminating such exceptions 
will not increase the material risk of harm to consumers, such 
agency may extend the application of section 101 to the excep-
tions identified in such finding. 
SEC. 104. APPLICABILITY TO FEDERAL AND STATE GOVERNMENTS. 
15 USC 7004. 
(a) FILING AND ACCESS REQUIREMENTS.—Subject to subsection 
(c)(2), nothing in this title limits or supersedes any requirement 
by a Federal regulatory agency, self-regulatory organization, or 
State regulatory agency that records be filed with such agency 
or organization in accordance with specified standards or formats. 
(b) PRESERVATION OF EXISTING RULEMAKING AUTHORITY.— 
(1) USE OF AUTHORITY TO INTERPRET,—Subject to paragraph 
(2) and subsection (c), a Federal regulatory agency or State 
regulatory agency that is responsible for rulemaking under 
any other statute may interpret section 101 with respect to 
such statute through— 
(A) the issuance of regulations pursuant to a statute; 
or 
(B) to the extent such agency is authorized by statute 
to issue orders or guidance, the issuance of orders or guid-
ance of general applicability that are publicly available 
and published (in the Federal Register in the case of an 
order or guidance issued by a Federal regulatory agency). 
This paragraph does not grant any Federal regulatory agency 
or State regulatory agency authority to issue regulations, 
orders, or guidance pursuant to any statute that does not 
authorize such issuance. 
(2) LIMITATIONS ON INTERPRETATION AUTHORITY.—Notwith-
standing paragraph (1), a Federal regulatory agency shall not 
adopt any regulation, order, or guidance described in paragraph 
(1), and a State regulatory agency is preempted by section 
101 from adopting any regulation, order, or guidance described 
in paragraph (1), unless— 
(A) such regulation, order, or guidance is consistent 
with section 101; 
114 STAT. 470 
PUBLIC LAW 106-229—JUNE 30, 2000 
(B) such regulation, order, or guidance does not add 
to the requirements of such section; and 
(C) such agency finds, in connection with the issuance 
of such regulation, order, or guidance, that— 
(i) there is a substantial justification for the regula-
tion, order, or guidance; 
(ii) the methods selected to CEirry out 
that 
purpose— 
(I) are substantieJly equivalent to the require-
ments imposed on records that are not electronic 
records; and 
(II) will not impose unreasonable costs on the 
acceptance and use of electronic records; and 
(iii) the methods selected to carry out that purpose 
do not require, or accord greater legal status or effect 
to, the implementation or application of a specific tech-
nology or technical specification for performing the 
functions of creating, storing, generating, receiving, 
communicating, or authenticating electronic records or 
electronic signatures. 
(3) PERFORMANCE STANDARDS.— 
(A) 
ACCURACY, RECORD INTEGRITY, ACCESSIBILITY.— 
Notwithstanding paragraph (2)(C)(iii), a Federal regulatory 
agency or State regulatory agency may interpret section 
101(d) to specify performance steindards to assure accuracy, 
record integrity, and accessibility of records that are 
required to be retained. Such performance standards may 
be specified in a manner that imposes a requirement in 
violation of paragraph (2)(C)(iii) if the requirement (i) 
serves an important governmental objective; and (ii) is 
substantially related to the achievement of that objective. 
Nothing in this paragraph shall be construed to grant 
any Federal regulatory agency or State regulatory agency 
authority to require use of a particular type of software 
or hardware in order to comply with section 101(d). 
(B) PAPER OR PRINTED FORM.—Notwithstanding sub-
section (c)(1), a Federal regulatory agency or State regu-
latory agency may interpret section l()l(d) to require 
retention of a record in a tangible printed or paper form 
if— 
(i) there is a compelling governmental interest 
relating to law enforcement or national security for 
imposing such requirement; and 
(ii) imposing such requirement is essential to 
attaining such interest. 
(4) EXCEPTIONS FOR ACTIONS BY GOVERNMENT AS MARKET 
PARTICIPANT.—Paragraph (2)(C)(iii) shall not apply to the stat-
utes, regulations, or other rules of law governing procurement 
by the Federal or any State government, or any agency or 
instrumentality thereof. 
(c) ADDITIONAL LIMITATIONS.— 
(1) REIMPOSING PAPER PROHIBITED.—Nothing in subsection 
(b) (other than paragraph (3)(B) thereof) shall be construed 
to grant any Federal regulatory agency or State regulatory 
agency authority to impose or reimpose any requirement that 
a record be in a tangible printed or paper form. 
PUBLIC LAW 106-229-JUNE 30, 2000 
114 STAT. 471 
b' 
(2) CONTINUING OBLIGATION UNDER GOVERNMENT PAPER-
WORK ELIMINATION ACT.—Nothing in subsection (a) or (b) 
relieves any Federal regulatory agency of its obligations under 
the Government Paperwork Elimination Act (title XVII of 
Public Law 105-277). 
(d) AUTHORITY TO EXEMPT FROM CONSENT PROVISION.— 
(1) IN GENERAL.—^A Federal regulatory agency may, with 
respect to matter within its jurisdiction, by regulation or order 
issued after notice and an opportunity for public comment, 
exempt without condition a specified category or type of record 
from the requirements relating to consent in section 101(c) 
if such exemption is necessary to eliminate a substantial burden 
on electronic commerce and will not increase the material risk 
of harm to consumers. 
(2) PROSPECTUSES.—^Within 30 days after the date of enact-
ment of this Act, the Securities and Exchange Commission 
shall issue a regulation or order pursuant to paragraph (1) 
exempting from section 101(c) any records that are required 
to be provided in order to allow advertising, sales literature, 
or other information concerning a security issued by an invest-
ment company that is registered under the Investment Com-
pany Act of 1940, or concerning the issuer thereof, to be 
excluded from the definition of a prospectus under section 
2(a)(10)(A) of the Securities Act of 1933. 
(e) ELECTRONIC LETTERS OF AGENCY.—The Federal Commu-
nications Commission shall not hold any contract for telecommuni-
cations service or letter of agency for a preferred carrier change, 
that otherwise complies with the Commission's rules, to be legally 
ineffective, invalid, or unenforceable solely because an electronic 
record or electronic signature was used in its formation or authoriza-
tion. 
Deadline. 
Regulations. 
SEC. 105. STUDIES. 
(a) DELIVERY.—^Within 12 months after the date of the enact-
ment of this Act, the Secretary of Commerce shall conduct an 
inquiry regarding the effectiveness of the delivery of electronic 
records to consumers using electronic mail as compared with 
delivery of written records via the United States Postal Service 
and private express mail services. The Secretary shall submit a 
report to the Congress regarding the results of such inquiry by 
the conclusion of such 12-month period. 
(b) STUDY OF ELECTRONIC CONSENT.—Within 12 months after 
the date of the enactment of this Act, the Secretary of Commerce 
and the Federal Trade Commission shall submit a report to the 
Congress evaluating any benefits provided to consumers by the 
procedure required by section 101(c)(l)(C)(ii); any burdens imposed 
on electronic commerce by that provision; whether the benefits 
outweigh the burdens; whether the absence of the procedure 
required by section 101(c)(l)(C)(ii) would increase the incidence 
of fraud directed against consumers; and suggesting any revisions 
to the provision deemed appropriate by the Secretary and the 
Commission. In conducting this evaluation, the Secretary and the 
Commission shall solicit comment from the general public, consumer 
representatives, and electronic commerce businesses. 
Deadlines. 
15 u s e 7005. 
Mail. 
Reports. 
Reports. 
Public 
information. 
114 STAT. 472 
PUBLIC LAW 1 0 6 - 2 2 9 - J U N E 30, 2000 
15 use 7006. 
SEC. 106. DEFINITIONS. 
For purposes of this title: 
(1) CONSUMER.—The term "consumer" means an individual 
who obtains, through a transaction, products or services which 
are used primarily for personal, family, or household purposes, 
and also means the legal representative of such an individual. 
(2) ELECTRONIC.—The term "electronic" means relating to 
technology having electrical, digitgJ, magnetic, wireless, optical, 
electromagnetic, or similar capabilities. 
(3) ELECTRONIC AGENT.—The term "electronic agent" means 
a computer program or an electronic or other automated means 
used independently to initiate an action or respond to electronic 
records or performances in whole or in part without review 
or action by an individual at the time of the action or response. 
(4) ELECTRONIC RECORD.—The term "electronic record" 
means a contract or other record created, generated, sent, 
communicated, received, or stored by electronic means. 
(5) ELECTRONIC SIGNATURE.—The term "electronic signa-
ture" means an electronic sound, symbol, or process, attached 
to or logically associated with a contract or other record Eoid 
executed or adopted by a person with the intent to sign the 
record. 
(6) FEDERAL REGULATORY AGENCY.—The term "Federal 
regulatory agency" means an agency, as that term is defined 
in section 552(f) of title 5, United States Code. 
(7) INFORMATION.—The term "information" means data, 
text, images, sounds, codes, computer programs, software, data-
bases, or the like. 
(8) PERSON.—The term "person" means an individual, cor-
poration, business trust, estate, trust, partnership, limited 
liability company, association, joint venture, governmental 
agency, public corporation, or any other leged or commercial 
entity. 
(9) RECORD.—The term "record" means information that 
is inscribed on a tangible medium or that is stored in an 
electronic or other medium and is retrievable in perceivable 
form. 
(10) REQUIREMENT.—The term "requirement" includes a 
prohibition. 
(11) SELF-REGULATORY ORGANIZATION.—The term "self-
regulatory organization" means an organization or entity that 
is not a Federeil regulatory agency or a State, but that is 
under the supervision of a Federal regulatory agency and is 
authorized under Federal law to adopt and administer rules 
applicable to its members that are enforced by such organiza-
tion or entity, by a Federal regulatory agency, or by another 
self-regulatory organization. 
(12) STATE.—The term "State" includes the District of 
Columbia and the territories and possessions of the United 
States. 
(13) TRANSACTION.—The term "transaction" means an 
action or set of actions relating to the conduct of business, 
consumer, or commercial affairs between two or more persons, 
including any of the following types of conduct— 
(A) the sale, lease, exchange, licensing, or other disposi-
tion of (i) personal property, including goods and intangi-
bles, (ii) services, euid (iii) any combination thereof; and 
PUBLIC LAW 106-229^JUNE 30, 2000 
114 STAT. 473 
(B) the sale, lease, exchange, or other disposition of 
any interest in real property, or any combination thereof. 
SEC. 107. EFFECTIVE DATE. 
15 USC 7001 
(a) IN GENERAL.—Except as provided in subsection (b), this 
title shall be effective on October 1, 2000. 
(b) EXCEPTIONS.— 
(1) RECORD RETENTION.— 
(A) IN GENERAL.—Subject to subparagraph (B), this 
title shall be effective on March 1, 2001, with respect 
to a requirement that a record be retained imposed by— 
(i) a Federal statute, regulation, or other rule of 
law, or 
(ii) a State statute, regulation, or other rule of 
law administered or promulgated by a State regulatory 
agency. 
(B) DELAYED EFFECT FOR PENDING RULEMAKINGS.—If 
on March 1, 2001, a Federal regulatory agency or State 
regulatory agency has announced, proposed, or initiated, 
but not completed, a rulemaking proceeding to prescribe 
a regulation under section 104(b)(3) with respect to a 
requirement described in subparagraph (A), this title shall 
be effective on June 1, 2001, with respect to such require-
ment. 
(2) 
CERTAIN 
GUARANTEED AND INSURED LOANS.—With 
regard to any transaction involving a loan guarantee or loan 
guarantee commitment (as those terms are defined in section 
502 of the Federal Credit Reform Act of 1990), or involving 
a program listed in the Federal Credit Supplement, Budget 
of the United States, FY 2001, this title applies only to such 
transactions entered into, and to any loan or mortgage made, 
insured, or guaranteed by the United States Government there-
under, on and after one year after the date of enactment of 
this Act. 
(3) STUDENT LOANS.—^With respect to any records that are 
provided or made available to a consumer pursuant to an 
application for a loan, or a loan made, pursuant to title IV 
of the Higher Education Act of 1965, section 101(c) of this 
Act shall not apply until the earlier of— 
(A) such time as the Secretary of Education publishes 
revised promissory notes under section 432(m) of the 
Higher Education Act of 1965; or 
(B) one year after the date of enactment of this Act. 
TITLE II—TRANSFERABLE RECORDS 
SEC. 201. TRANSFERABLE RECORDS. 
. 
15 USC 7021. 
(a) DEFINITIONS.—For purposes of this section: 
(1) TRANSFERABLE RECORD.—The term "transferable record" 
means an electronic record that— 
(A) would be a note under Article 3 of the Uniform 
Commercial Code if the electronic record were in writing; 
(B) the issuer of the electronic record expressly has 
agreed is a transferable record; £ind 
(C) relates to a loan secured by real property. 
114 STAT. 474 
PUBLIC LAW 106-229—JUNE 30, 2000 
A transferable record may be executed using an electronic 
signature. 
(2) OTHER DEFINITIONS.—The terms "electronic record", 
"electronic signature", and "person" have the same meanings 
provided in section 106 of this Act. 
(b) CONTROL.—^A person has control of a transferable record 
if a system employed for evidencing the transfer of interests in 
the transferable record reliably establishes that person as the per-
son to which the transferable record was issued or transferred. 
(c) CONDITIONS.—^A system satisfies subsection (b), and a person 
is deemed to have control of a transferable record, if the transferable 
record is created, stored, and assigned in such a manner that— 
(1) a single authoritative copy of the transferable record 
exists which is unique, identifiable, and, except as otherwise 
provided in paragraphs (4), (5), and (6), unalterable; 
(2) the authoritative copy identifies the person asserting 
control as— 
(A) the person to which the transferable record was 
issued; or 
(B) if the authoritative copy indicates that the transfer-
able record has been transferred, the person to which the 
transferable record was most recently transferred; 
(3) the authoritative copy is communicated to and main-
tained by the person asserting control or its designated custo-
dian; 
(4) copies or revisions that add or change an identified 
assignee of the authoritative copy can be made only with the 
consent of the person asserting control; 
(5) each copy of the authoritative copy and any copy of 
a copy is readily identifiable as a copy that is not the authori-
tative copy; and 
(6) any revision of the authoritative copy is readily identifi-
able as authorized or unauthorized. 
(d) STATUS AS HOLDER.—Except as otherwise agreed, a person 
having control of a transferable record is the holder, as defined 
in section 1-201(20) of the Uniform Commercial Code, of the 
transferable record and has the same rights and defenses as a 
holder of an equivalent record or writing under the Uniform 
Commercial Code, including, if the applicable statutory require-
ments under section 3-302(a), 9-308, or revised section 9-330 of 
the Uniform Commercial Code are satisfied, the rights and defenses 
of a holder in due course or a purchaser, respectively. Delivery, 
possession, and endorsement are not required to obtain or exercise 
any of the rights under this subsection. 
(e) OBLIGOR RIGHTS.—Except as otherwise agreed, an obligor 
under a transferable record has the same rights and defenses as 
an equivalent obligor under equivalent records or writings under 
the Uniform Commercial Code. 
(f) PROOF OF CONTROL.—If requested by a person against which 
enforcement is sought, the person seeking to enforce the transfer-
able record shall provide reasonable proof that the person is in 
control of the transferable record. Proof may include access to 
the authoritative copy of the transferable record Eind related busi-
ness records sufficient to review the terms of the transferable 
record and to establish the identity of the person having control 
of the transferable record. 
PUBLIC LAW 106-229-^UNE 30, 2000 
114 STAT. 475 
(g) UCC REFERENCES.—For purposes of this subsection, all 
references to the Uniform Commercial Code are to the Uniform 
Commercial Code as in effect in the jurisdiction the law of which 
governs the transferable record. 
SEC. 202. EFFECTIVE DATE. 
15 USC 7021 
This title shall be effective 90 days after the date of enactment 
of this Act. 
TITLE 
III—PROMOTION 
OF 
INTER-
NATIONAL ELECTRONIC COMMERCE 
SEC. 301. PRINCIPLES GOVERNING THE USE OF ELECTRONIC SIGNA- 
15 USC 7031. 
TURES IN INTERNATIONAL TRANSACTIONS. 
(a) PROMOTION OF ELECTRONIC SIGNATURES.— 
(1) REQUIRED ACTIONS.—The Secretary of Commerce shall 
promote the acceptance and use, on an international basis, 
of electronic signatures in accordance with the principles speci-
fied in paragraph (2) and in a manner consistent with section 
101 of this Act. The Secretary of Commerce shall take all 
actions necessary in a manner consistent with such principles 
to eliminate or reduce, to the maximum extent possible, the 
impediments to commerce in electronic signatures, for the pur-
pose of facilitating the development of interstate and foreign 
commerce. 
(2) PRINCIPLES.—The principles specified in this paragraph 
are the following: 
(A) Remove paper-based obstacles to electronic trans-
actions by adopting relevant principles fi-om the Model 
Law on Electronic Commerce adopted in 1996 by the United 
Nations Commission on International Trade Law. 
(B) Permit parties to a transaction to determine the 
appropriate authentication technologies and implementa-
tion models for their transactions, with assursince that 
those technologies and implementation models will be rec-
ognized and enforced. 
(C) Permit parties to a transaction to have the oppor-
tunity to prove in court or other proceedings that their 
authentication approaches amd their transactions are valid. 
(D) Take a nondiscriminatory approach to electronic 
signatures and authentication methods fi*om other jurisdic-
tions. 
(b) CONSULTATION.—In conducting the activities required by 
this section, the Secretary shall consult with users and providers 
of electronic signature products and services and other interested 
persons. 
(c) DEFINITIONS.—^As used in this section, the terms "electronic 
record" and "electronic signature" have the same meanings provided 
in section 106 of this Act. 
114 STAT. 476 
PUBLIC LAW 106-229—JUNE 30, 2000 
TITLE IV—COMMISSION ON ONLINE 
CHILD PROTECTION 
SEC. 401. AUTHORITY TO ACCEPT GIFTS. 
Section 1405 of the Child Online Protection Act (47 U.S.C. 
231 note) is amended by inserting after subsection (g) the following 
new subsection: 
"(h) GIFTS, BEQUESTS, AND DEVISES.—The Commission may 
accept, use, and dispose of gifts, bequests, or devises of services 
or property, both real (including the use of office space) and per-
sonal, for the purpose of aiding or facilitating the work of the 
Commission. Gifts or grants not used at the termination of the 
Commission shall be returned to the donor or grantee.". 
Approved June 30, 2000. 
LEGISLATIVE HISTORY—S. 761 (H.R. 1714): 
HOUSE REPORTS: No. 106-341, accompanying H.R. 1714, Pt. 1 (Comm. on Com-
merce) and Pt. 2 (Comm. on the Judiciary). 
SENATE REPORTS: Nos. 106-131 (Comm. on Commerce, Science, and Transpor-
tation) and 106^61 (Comm. of Conference). 
CONGRESSIONAL RECORD: 
Vol. 145 (1999): Nov. 19, considered and passed Senate. 
Vol. 146 (2000): Feb. 16, considered and passed House, amended, in lieu of 
H.R. 1714. 
June 14, House agreed to conference report. 
Jiuie 15, 16, Senate considered and agreed to conference 
report. 
WEEKLY COMPILATION OF PRESIDENTIAL DOCUMENTS, Vol. 36 (2000): 
June 30, Presidential remarks and statement.