Illinois Compiled Statutes 205 ILCS 705 Financial Institutions Electronic Documents and Digital Signature Act. Section 10

    (205 ILCS 705/10)

    Sec. 10. Electronic documents; digital signatures; electronic notices.

    (a) Electronic documents. If in the regular course of business, a financial institution possesses, records, or generates any document, representation, image, substitute check, reproduction, or combination thereof, of any agreement, transaction, act, occurrence, or event by any electronic or computer-generated process that accurately reproduces, comprises, or records the agreement, transaction, act, occurrence, or event, the recording, comprising, or reproduction shall have the same force and effect under the laws of this State as one comprised, recorded, or created on paper or other tangible form by writing, typing, printing, or similar means.

    (b) Digital signatures. In any communication, acknowledgement, agreement, or contract between a financial institution and its customer, in which a signature is required or used, any party to the communication, acknowledgement, agreement, or contract may affix a signature by use of a digital signature, and the digital signature, when lawfully used by the person whose signature it purports to be, shall have the same force and effect as the use of a manual signature if it is unique to the person using it, is capable of verification, is under the sole control of the person using it, and is linked to data in such a manner that if the data are changed, the digital signature is invalidated. Nothing in this Section shall require any financial institution or customer to use or permit the use of a digital signature.

    (c) Electronic notices.

        (1) Consent to electronic records. If a statute,

    regulation, or other rule of law requires that information relating to a transaction or transactions in or affecting intrastate commerce in this State be provided or made available by a financial institution to a consumer in writing, the use of an electronic record to provide or make available that information satisfies the requirement that the information be in writing if:

            (A) the consumer has affirmatively consented to

        the use of an electronic record to provide or make available that information and has not withdrawn consent;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' relationship), or fees in the event of a withdrawal of consent;

                (ii) informing the consumer of whether the

            consent applies:

                    (I) only to the particular transaction

                that 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 consent, the consumer

                may, upon request, obtain a paper copy of an electronic record, and

                    (II) whether any fee will be charged for

                a paper 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 imposition of any fees for the 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 subsection (c) affects the content or timing of any disclosure or other record required to be provided or made 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 amendatory Act of the 95th General Assembly 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 the required verification or acknowledgment of receipt.

        (3) Effect of failure to obtain electronic consent or

    confirmation of consent. The legal effectiveness, validity, or enforceability of any contract executed by a consumer shall not be denied solely because of the failure to obtain electronic consent or confirmation of consent by that consumer in accordance with paragraph (1)(C)(ii).

        (4) Prospective effect. Withdrawal of consent by a

    consumer shall not affect the legal effectiveness, validity, or enforceability of electronic records provided or made available to that consumer in accordance with paragraph (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

    any records that are provided or made available to a consumer who has consented prior to the effective date of this amendatory Act of the 95th General Assembly to receive the 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 (c), except as otherwise provided under applicable law.

(Source: P.A. 94-458, eff. 8-4-05; 95-77, eff. 8-13-07.)

Sections:  Previous  1  5  10  15  80  82  84  86  88  90  92  99  Next

Last modified: February 18, 2015