HARAHAN, La. (7/2/14)--As of Tuesday, Louisiana financial institutions can accept electronic signatures after Gov. Bobby Jindal signed into law legislation that was drafted with the input of the Louisiana Credit Union League.
The original legislation, HB 661, was sponsored by Rep. Ed Price (D-Gonzales) to relieve credit unions of the burden of maintaining paper records. The practice of electronic document storage is widely accepted in the United States, however, Louisiana law previously restricted financial institutions reliance on electronic storage of certain records.
The bill was drafted by the league, the law firms of Adams and Reese and Trimmier, Kudulis and Reisinger, with additional input from the Louisiana Bankers Association.
Among the new law's provisions:
- Allows financial institutions to choose whether to rely on traditional paper records or digitally reproduced records;
- Enhances confidence in digital record storage, retention and file integrity;
- Decreases costs for financial institutions and consumers by eliminating the expense of retention of paper documents; and
- Increases consumer confidence, protection and convenience by requiring that reproductions are certified by a representative of a financial institution.
Credit unions seeking to submit electronically signed records must attach a certificate of authenticity to the documents. The league has prepared a certificate for credit unions to use, which can be found on its