NCUA Rules FCU May Rely On E-Signature

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A federal credit union may rely on a member's electronic signature to establish membership, according to NCUA.

In a new legal opinion issued last week to Star One CU, NCUA told the Sunnyvale, Calif., credit union that federal law, the 2000 Electronic Signatures in Global and National Commerce Act, generally establishes that electronic documents and signatures carry the same validity as paper documents and handwritten signatures. Star One CU told NCUA it will require a prospective member who completes an online application form at home to print and sign the completed form and mail it to the credit union, along with a photocopy of a valid driver's license.

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