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Governor Jindal signs Act 440; Bill comes into effect July 1, 2014

(June 30, 2014) — On Tuesday, July 1, 2014, Act 440 becomes effective whereby Louisiana financial institutions can rely consistently on electronic signatures as authentic regardless of which jurisdiction or judge is presiding.

Overview

The original legislation, HB 661, was sponsored by Representative 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 (FIs) reliance on electronic storage of certain records.

The bill was drafted by the Louisiana Credit Union League, Adams & Reese, and the Trimmier, Kudulis & Reisinger Law Firm, with input from the Louisiana Bankers Association.

Specifics of the Changes

  • Allows FI’s 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 FI’s and consumers by eliminating the expense of retention of paper documents;
  • Increases consumer confidence, protection, and convenience by requiring that reproductions are certified by a representative of a FI.

Implementation

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 LCUL’s website 24/7, or click here to download the certificate.

For more information, contact the League at (800) 452-7221.

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