1. ESRA Spring Member Meeting May 9, 2018
Sponsored by ESRA Member Organization
ESRA Spring Member Meeting May 9, 2018
© 2018 Electronic Signature and Records Association, Inc. All rights reserved. No copyright claimed on images licensed from others. No part of this document may be reproduced or transmitted in any form, by any means (electronic, photocopying, recording or otherwise) without the expressed prior signed permission. This presentation is for purposes of education and discussion; it is intended to be informational only.

2. Chairman’s Welcome Harry Gardner| Docutech
© 2018 Electronic Signature and Records Association, Inc. All rights reserved. No copyright claimed on images licensed from others. No part of this document may be reproduced or transmitted in any form, by any means (electronic, photocopying, recording or otherwise) without the expressed prior signed permission. This presentation is for purposes of education and discussion; it is intended to be informational only.

4. ESRA Organizational Chart
Board of Directors
Events & Education Planning Committee
Marketing & Communications Committee
Membership Committee
Public Policy Committee
Standards Committee
Staff Administrative
Staff Public Policy
Plan, coordinate and produce engaging educational programs, activities and events.
Create brand awareness and drive membership growth by overseeing ESRA’s marketing and messaging efforts.
Recruit, retain and engage ESRA membership, in collaboration with other committees.
Develop and implement policy initiatives in support of ESRA’s core mission.
Develop and publish standards that encourage the use and acceptance of digital transactions.

5. eSignRecords2018 Update Brian Webster| Wells Fargo
© 2018 Electronic Signature and Records Association, Inc. All rights reserved. No copyright claimed on images licensed from others. No part of this document may be reproduced or transmitted in any form, by any means (electronic, photocopying, recording or otherwise) without the expressed prior signed permission. This presentation is for purposes of education and discussion; it is intended to be informational only.

6. eSignRecords 2018
Nov , 2018
Treasure Island
Las Vegas, NV

7. eSignRecords 2018 Preliminary Agenda
Wednesday, November 14
9 a.m.
Registration + Network breakfast
10 a.m.
Opening Remarks
10:15 a.m.
Chairman Remarks
10:30 a.m.
Session A1 - Keynote
11:30 a.m.
Break
11:45 a.m.
Session A2
12:15 p.m.
Session A3
12:45 p.m.
Session - Quick Demos
1:15 p.m.
Roundtable Lunch
2:30 p.m.
Session B1
3 p.m.
Session B2
3:30 p.m.
3:45 p.m.
Session B3
4:15 p.m.
Session B4
4:45 p.m.
5:15 p.m.
Wrap up
5:30 p.m.
Reception
Thursday, November 15
9 a.m.
Registration + Network breakfast
10 a.m.
Session C1 - Keynote
10:45 a.m.
Session C2
11:15 a.m.
Break
11:30 a.m.
Session C3
noon
Session - Quick Demos
12:30 p.m.
Roundtable Lunch
1:45 p.m.
Town Hall Meeting
2:45 p.m.
Session D1
3:15 p.m.
3:45 p.m.
4 p.m.
Session D2
4:30 p.m.
Session D3
5 p.m.
Wrap up

8. eSignRecords 2018 Speaker Topics
We are looking for a pragmatic or macroeconomic approach or future trends in the following areas:
Case Studies – Real World Implementations
Blockchain and Distributed Ledgers and Smart Contracts
Digital Identity and Authentication
Digital Transactions on Mobile Devices and Phones
E-Notarization and E-Recording
Industry Trends and Use of E-Signatures and Digital Transactions
Security and Privacy and ADA Issues in Digital Transactions

9. Legal Update & Regulatory Review Margo Tank & David Whitaker| DLA Piper
© 2018 Electronic Signature and Records Association, Inc. All rights reserved. No copyright claimed on images licensed from others. No part of this document may be reproduced or transmitted in any form, by any means (electronic, photocopying, recording or otherwise) without the expressed prior signed permission. This presentation is for purposes of education and discussion; it is intended to be informational only.

10. Accepting Third-Party Electronically Signed Documents
Growing trend – companies look to accept documents that have been signed using third party processes and then presented to the company for acceptance and reliance. Three general categories:
Electronic documents that have been signed using a third party’s electronic signature process but that are delivered electronically with a “flattened” electronic signature -- that is, without certain metadata (e.g., descriptive, structural and administrative);
Electronic documents that have been signed using a third party’s electronic signature process, but have been flattened by being printed out, and delivered to the company on paper or sent by facsimile; and
Electronic documents that have been signed using a third party’s electronic signature process and delivered electronically with “dynamic” attributes, including metadata about the signing process and the integrity of the document.

11. Accepting Third-Party Electronically Signed Documents
Key issues
Legal sufficiency of the signing process
Attribution of signature
Integrity of signed record
What to accept?
Accept only dynamically signed electronic records
Accept dynamic and flattened electronic records – no paper print outs
Accept all three categories
Alternative acceptance policies
Accept only documents signed on a designated platform or platforms approved by the Company
Accept documents signed on most well-known platforms
Accept any document that does not have explicit indicia of unreliability

12. Accepting Third-Party Electronically Signed Documents
Procedures and training
Eligibility and acceptance criteria
May vary by document type
May vary by transaction size or liability exposure
Acceptance Procedures
Training for intake employees
What to look for
Stare-and-compare
Inspection of metadata
Inspection of accompanying audit logs
Reps and warranties or certification
Retention of transmittal communications

13. Attribution and relying on an email address
Many electronic signature transactions start with an invitation with a link to the documents to be reviewed and signed
The invitation may be forwarded by the recipient, and the link activated by someone else – who proceeds to sign the documents, using the name of the addressee, without authorization
So, even if the address is included in the audit trail, it may not provide evidence of the signer’s identity sufficient for attribution of the signature, if the signer disputes the signature – See IO Moonwalkers v. Bank of America
Options
Two-factor authentication for the signer (use of call-back or OTP)
KBA test (mostly useful for consumer transactions)
Agreement for reliance on stated identity of signer, based on delivery of documents to authorized address, in corporate resolutions/authorizations

14. Key legislative and regulatory developments
Blockchain/smart contract legislation
UETA revisions
Arizona
Tennessee
Response from ESRA and the Chamber of Digital Commerce
Sandbox legislation
Wyoming Potpourri
Federal regulators and Blockchain
SEC and CFTC
FTC
Federal Motor Carrier Safety Administration

15. Key judicial developments
Solartech Renewables, LLC v. Vitti – WHAT’s not an electronic record?
Cobble v. 20/20 Communications, Inc. – Proof of non-bypassable employee online onboarding process sufficient to establish employee review and execution of agreement, even if there is no longer a copy of the signed agreement
Prasad v. Pinnacle Management Services Company, LLC – Incomplete signature process may still establish that agreement was signed.
Theberge v. Sportswear, Inc. – Minimum contacts required for jurisdiction really are “minimal”
IO Moonwalkers v. Bank of America – Even if signer unauthorized, signature platform audit trail can provide evidence of elements necessary for contract ratification

16. Questions? Margo H.K. Tank R. David Whitaker Partner +1 202.799.4170
R. David Whitaker

17. Break
© 2018 Electronic Signature and Records Association, Inc. All rights reserved. No copyright claimed on images licensed from others. No part of this document may be reproduced or transmitted in any form, by any means (electronic, photocopying, recording or otherwise) without the expressed prior signed permission. This presentation is for purposes of education and discussion; it is intended to be informational only.

18. eNotary Update Penny Reed| Wells Fargo
© 2018 Electronic Signature and Records Association, Inc. All rights reserved. No copyright claimed on images licensed from others. No part of this document may be reproduced or transmitted in any form, by any means (electronic, photocopying, recording or otherwise) without the expressed prior signed permission. This presentation is for purposes of education and discussion; it is intended to be informational only.

19. Disclosure
The views expressed during these presentations are directional and informative only and participants are urged to complete further research.
© ESRA 2017

20. eNotary Vernacular Just a reminder of terms
ESIGN – Electronic Signatures in Global and National Commerce Act
UETA – Uniform Electronic Transactions Act
RULONA – Revised Uniform Law of Notarial Acts
ULONA - Uniform Law of Notarial Acts
URAA – Uniform Recognition of Acknowledgements Act
UAA – Uniform Acknowledgements Act
URPERA – Uniform Real Property Electronic Recording Act
ULC – Uniform Law Commission
PRIA – Property Records Industry Association
RON – Remote Online Notarization

21. eNotary Findings eNotary essentially controlled at the State Level
Under ESIGN, UETA and/or URPERA, eNotary should be an authorized act for most document types.
However, various state laws controlling real estate transactions complicate the adoption of eNotary and therefore remote notary
Additional witness requirements
Recording requirements
Nexus for real estate transactions
Recording requirements identified as largest obstacle for uniform statewide adoption.

22. Current State of the States - UETA
Current state is stable with no new activity in non-UETA states
ULC expressed reluctance to re-open UETA for revisions due to difficulty in agreement and adoption of current version
UETA currently does not address creating tangible records from electronic originals.

23. Current State of the States - URPERA
URPERA adoption is increasing
Does not address tangible copies
Informal survey of recorders reveal many stated reasons for lack of adoption
Lack of written guidance for converting eDocs to tangible records is an issue for many recorders.

24. Current State of the States - RULONA
Activity has increased greatly in as states feel pressure for eNotary.
Action needed to include “paper-out” ability for recorders.

25. Current State of the States - RULONA
RULONA 2016 Amendment
This amendment allows remote notary for principals located outside US.

26. Current State of the States – “e” and “RON”
States enacted and active: Montana, Virginia
States enacted for effective dates: Indiana, Nevada, Tenessee, Texas
States with active legislation in flight:
California RON: Passed initial committee unanimously sent to Appropriations
Colorado RON: Passed Senate in House Judiciary Committee
DC eN: Introduced (inactive) RULONA: Introduced (inactive)
Georgia RULONA: Introduced (inactive) Attorney Requirement: In Committee
Kentucky: eN and RON: Preparing for reintroduction
Louisiana: Three bills in flight
Massachusetts: eN Study in Committee
Maryland: Task force in formation
Missouri RON: Passed Senate in House Committee
Nebraska RON: Introduced (inactive)
Ohio RON: Introduced in Committee
Oklahoma RON: Introduced in Committee
Pennsylvania RON: Re-referred to Appropriations
South Dakota RULONA: Passed House, tabled in Senate

27. Electronic Document Presentment Giovanni Moro| Wells Fargo
© 2018 Electronic Signature and Records Association, Inc. All rights reserved. No copyright claimed on images licensed from others. No part of this document may be reproduced or transmitted in any form, by any means (electronic, photocopying, recording or otherwise) without the expressed prior signed permission. This presentation is for purposes of education and discussion; it is intended to be informational only.

28. The customer perspective
Customers desire choice of channel and device
Consumable content should be is scalable, responsive, and meet accessibility standards (ADA)
Simplified, engaging design patterns guide customers through consumption of information and gives them confidence in comprehension
Document structures need to move away from “pages” to content that can be consumed and optimized on any device
Anytime/ anywhere access
93% of consumers use online banking *
64% of consumers use online banking on a mobile device *
* From a study commissioned by Wells Fargo conducted by Versta Research produced the Quantitative Research and IBM Interactive Experience produced the Qualitative Research

29. Online delivery Unique benefits Constraints
Information can be made more easily consumable
Capabilities can address sight-impaired challenges
Speed of delivery and traceability of interactions
Secure digital increases data protection
Constraints
Regulations are often paper-based
A common, industry-standard format or process

30. Who owns or controls document content?
Format of the document
How do we present it?
How must it be fulfilled?
How do we store it?
What to do with it afterward?
The document journey
Ownership dictates controls and policy (Gov, IRS, Regulator, Bank, Investor, 3rd party)
It is important to know the purpose of the document / content
Electronic presentment necessitates industry-driven content standards & schema
Consider format for transaction storage (data, dynamic pdf, images)
Rules for post-transaction storage (repository, investor, custodian, downstream use)

31. Lunch
© 2018 Electronic Signature and Records Association, Inc. All rights reserved. No copyright claimed on images licensed from others. No part of this document may be reproduced or transmitted in any form, by any means (electronic, photocopying, recording or otherwise) without the expressed prior signed permission. This presentation is for purposes of education and discussion; it is intended to be informational only.

32. Workgroup “5-Minute Updates” Ken Moyle| K6Partners
eNotary | Michael Chodos
CA UETA & CA recording barriers | Paul Flores
eClosing & eMortgage | Harry Gardner
eIDAS | Michael Laurie
Electronic Wills | Ken Friedman
FRB & FHLB | Mark Fiero
Blockchain | Dave Brinkman
eTitling | Ann Gunning
© 2018 Electronic Signature and Records Association, Inc. All rights reserved. No copyright claimed on images licensed from others. No part of this document may be reproduced or transmitted in any form, by any means (electronic, photocopying, recording or otherwise) without the expressed prior signed permission. This presentation is for purposes of education and discussion; it is intended to be informational only.

33. CA e-Recording Barriers
Objectives
What we’re doing
Situation
Amend Electronic Recording Delivery Act of and rules that limits recording of digital instruments ( i.e. deeds, trust deeds, easement deeds, etc.)
Strategy
Collaborate with stakeholders including CA Dept. of Justice, California Land Title Assn., vendors and CA County Recorders to amend Government Code and administrative regulations
Accomplishments
AB 2413 Signed by Gov. Brown in 2016
Advisory Electronic Recording Delivery Committee submitted to DOJ amendments to administrative regulations in 2017 which need to be processed before being adopted in 2018 or 2019
Next Actions
Work in tandem with various stakeholders in CA regarding adoption of statutory amendments that clearly authorizes online e-Notarial Public Acts

34. CA UETA Non-Confirming Exceptions
Objectives
What we’re doing
Situation
CA adopted exceptions to UETA that were not part of NCCUSL Model Statute
Need to eliminate non-conforming exceptions
Strategy
Develop and distribute ESRA White Paper that addresses advantages of Digital Solutions from a consumer’s perspective
Identify, plan and meet with key CA Tech Caucus state legislators in 2019
Anticipate and mitigate against Pro- consumer organization push back
Accomplishments
ESRA White Paper “ Move to Digital Communication: Report on Consumer Benefits of Electronic Records (Nov. 2017)
Key legislators identified
Draft Amendment to CA Code
Next Actions
Recruit new members for this project
Draft Talking Points based on White Paper
Develop and schedule visits with CA legislators in 2019

35. eMortgage Workgroup Promote / support eMortgage adoption
Objectives
What we’re doing
Promote / support eMortgage adoption
Possible areas of focus:
Identify / help clear roadblocks
eNotarization (separate ESRA workgroup)
Investor acceptance (separate ESRA workgroup)
Educational / promotional? Not currently a priority, because…
Industry awareness at an all-time high
Lenders very interested
ROI has been tackled by some; Fannie Mae published eMortgage Calculator tool
Monitoring developments of all aspects
Looking for specific areas of need that are not being addressed by other workgroups or industry efforts

36. Vehicle eTitling Project
Objectives
What we’re doing
Situation
Need for interstate and intrastate electronic processes for automating the public document processing involved with vehicle financing and sales, specifically registration and titling.
Strategy
Educate, influence, encourage, share best practices among states individually and through AAMVA on eTitling.
Provide feedback to NHTSA, AFSA/NTSF on electronic records and recommendations for eTitling.
Accomplishments
Established shared repository of state practices, regulations, legislation on eSignature, eOdometer, ePOA, as related to eTitle.
Reviewed March 2018 AAMVA eOdometer Task Force Report.
Meeting, communicating, influencing states; sharing advances states are making among members
Next Actions
Continue outreach to states regarding eTitling areas.
Continue to build repository of state info.
Monitor activities from AAMVA, NHTSA.
Publish paper or findings to assist states with making progress towards eTitling.

37. FHLB/FRB Acceptance Project
Objectives
What we’re doing
Situation
FHLB and FRB have been reluctant to accept eNotes as collateral
Strategy
Gain understanding of obstacles to acceptance
Contact various banks to obtain different perspectives
Accomplishments
Determined Barriers to Acceptance
Non-MISMO Compliant Documents
Lack of Secondary Market
Lack of Authoritative copy
Multiple FHLB banks are actively working towards acceptance
Increased awareness of the problem
Next Actions
Monitor progress at various banks
Publicize ESRA support for eNote collateral acceptance.

38. E-Notary and Remote Notary
Objectives
What we’re doing
Notarization:
Adoption of e-notarization one key driver of expanding use of e-commerce and e-gov
Strategy
Use ESRA credibility to Elevate Issue, Support model legislation
Be a neutral voice, beyond just mortgage, for tech neutrality, interoperability
Participate visibly in policy, standards- setting fora
Accomplishments
Distribute ESRA Policy Statements re e- Notary, Remote Notary re legislation
Update membership on legislation, policy
Participate in NASS, MISMO, PRIA, MBA- ALTA, ULC
Next Actions
Influence legislation, standards
Comment on pending remote regs
Publish analysis of legislation and tech neutrality before next cycle?

39. Electronic Signatures for Wills
Objectives
What we’re doing
Situation
As of January 1, 2017, one state allowed electronic signatures on wills (Nevada) with a methodology no one understood or used.
Meanwhile, according to the American Bar Association, 55 percent of American adults do not have a will or other estate plan in place.
Strategy
Legislative action at state level.
Accomplishments
Nevada Revised eWill law in 2017 (also established remote notarization).
Nevada law accepted as shared legislation by CSG.
Indiana passed eWill law in 2018
As of April 16, 2018, an Arizona eWill bill has passed the House and Senate and awaits concurrence for changes.
A bill was introduced in California during April 2018.
The ULC has formed a drafting committee and is working on its second draft.
Next Actions
Work with California.
Determine priorities for 2019.

40. Blockchain
Objectives
What we’re doing
Situation
As an emerging solution to a multitude of opportunities, the blockchain committee looks for both opportunities to learn and advocate blockchain in both industry and legislation.
Strategy
The ESRA Blockchain PPC meets every two weeks to review news items, hear presentations from real-world implementors and look for areas where we may influence public policy.
Accomplishments
Joint Stmt CA AB 2658 w/CoDC, ESRA & Pat Fry
Cook County, Deputy Recorder of Deeds
CU Ledger, Blockchain in Credit Unions
Next Actions
Presentations
News Digest
Opportunities to influence

41. eIDAS Guidance General guidance on complying with eIDAS
Objectives
What we’re doing
General guidance on complying with eIDAS
eIDAS is a vast, detailed regulation with supporting regulations and standards since Its complexity has created confusion on which types of e-signatures are required in various business situations and geographies.
Strategy
Assist organizations in the understanding of the applicability of the 3 recognized signature types in the EU to select the most appropriate solution for their applications.
Accomplishments
Description of requirements for 3 signature types in EU
General guidance on applicability for each.
Next Actions
Situations/geographies where Qualified services are likely to be required/requested
Characteristics of QES solutions available
Characteristics of AES solutions available

42. Break
© 2018 Electronic Signature and Records Association, Inc. All rights reserved. No copyright claimed on images licensed from others. No part of this document may be reproduced or transmitted in any form, by any means (electronic, photocopying, recording or otherwise) without the expressed prior signed permission. This presentation is for purposes of education and discussion; it is intended to be informational only.

43. Working Huddle Harry Gardner| Docutech Ken Moyle | K6 Partners
Committee Overviews and Leadership
Issue prioritization exercise
Committee work (future meeting schedule, goals, etc.)
Brainstorming: Annual Conference Speakers, Sponsors & Exhibitors
© 2018 Electronic Signature and Records Association, Inc. All rights reserved. No copyright claimed on images licensed from others. No part of this document may be reproduced or transmitted in any form, by any means (electronic, photocopying, recording or otherwise) without the expressed prior signed permission. This presentation is for purposes of education and discussion; it is intended to be informational only.