# E-Sign Act

Canonical URL: https://fundmyequipment.com/learn/glossary/e-sign-act/
Last modified: 2026-05-29T19:39:17+00:00
Type: efin_glossary

## Summary

Federal law allowing electronic signatures to have same legal validity as wet signatures.

## Content

E-Sign Act (Electronic Signatures in Global and National Commerce Act, 15 USC 7001) is the federal law that recognizes electronic signatures and records as legally valid for commercial transactions. Most equipment financing closings now use electronic signatures under E-Sign Act protections.
What E-Sign covers

Electronic signatures (DocuSign, Adobe Sign, etc.) have the same legal effect as wet ink signatures
Electronic records satisfy "in writing" requirements in most laws
Consumers must consent to electronic delivery of disclosures (separately from agreeing to the underlying transaction)
The consumer must be able to access and retain electronic disclosures

E-Sign in equipment financing
Most equipment finance closings use electronic signature platforms (DocuSign is most common). The lender sends an envelope of documents; the borrower (and guarantors) sign electronically; the system verifies signer identity and stores the signed documents.
Equipment-finance E-Sign workflow:

Lender prepares loan documents (loan agreement, security agreement, personal guarantee, UCC-1 authorization)
Documents sent via DocuSign or equivalent
Borrower opens email, verifies identity, signs each document
System captures signature timestamp, IP address, geolocation, identity verification
All parties receive final signed copies
Lender funds the loan

E-Sign vs traditional

E-Sign: faster, less paper, immediate distribution of copies, audit trail built in
Traditional wet-ink: still legally valid; sometimes required for specific transactions or for state-law reasons

Consumer consent requirement
Before electronic disclosures, the lender must obtain consumer consent to receive electronic vs paper delivery. This typically happens during application as a separate checkbox. The consumer can withdraw consent later (we cover this in our e-sign consent page).
What can't be e-signed
Some transactions require wet-ink signature regardless of E-Sign Act:

Wills and certain testamentary documents
Court orders and certain official notices
Property deeds in some states (though increasingly accepted electronically)
Family law and adoption

Equipment finance is not in this list; e-sign is universal.