§ 308B.007 Legal Recognition Of Electronic Records And Signatures

In plain language#

For purposes of chapter 308B, electronic form alone is not a reason to deny a record, signature or contract legal effect. That does not validate every process or override requirements outside this chapter. The statute states four rules ^{P1, § 308B.007, subd. 2}:

1. A record or signature cannot be denied legal effect or enforceability solely because it is electronic.
2. A contract cannot be denied legal effect or enforceability solely because an electronic record was used to form it.
3. Where a provision calls for a writing, an electronic record satisfies it.
4. Where a provision calls for a signature, an electronic signature satisfies it.

Subdivision 1 defines the terms. An "electronic signature" is an electronic sound, symbol or process attached to or logically associated with a record and executed or adopted by a person with the intent to sign the record. A "record" is information stored on a tangible medium or in an electronic or other medium that can be retrieved in perceivable form.

How it works in practice#

• Bylaws, minutes, consents, membership applications and similar cooperative paperwork that the chapter requires to be "in writing" can be created and signed electronically as far as this chapter is concerned.
• "Signed" is also defined in § 308B.005, subd. 24, and that definition separately allows facsimile and electronic signatures on documents filed with the secretary of state.
• The section applies "for purposes of this chapter." It does not by its own terms govern requirements found in other law, in a lender's documents, or in another agency's filing rules.

Related#

• Definition of "signed": § 308B.005
• Member action by written or electronic means: § 308B.541
• Cooperative records: § 308B.245